According to a report by blockchain data platform Chainalysis, global cryptocurrency investors realized total gains of $162.7 billion in 2021, up from $32.5 billion in 2020.
According to the report, the United States led by a wide margin with an estimated $47.0 billion in realized cryptocurrency gains, followed by the United Kingdom, Germany, Japan, and China
Interestingly, China’s total estimated realized cryptocurrency gains in 2021 were $5.1 billion, up from $1.7 billion in 2020, for a 194 percent year-over-year growth rate.
“While that may appear significant, it represents a lower growth rate than that of other countries.” For example, in the United States, estimated realized cryptocurrency gains increased 476 percent, from $8.1 billion to $47.0 billion. Other countries’ cryptocurrency gains grew at similar rates — the United Kingdom, for example, saw a 431 percent increase, while Germany’s gains increased by 423 percent,” according to a report.
Furthermore, China’s lower growth rate most likely reflects declines in the country’s cryptocurrency activity as a result of government crackdowns.
In terms of the crypto assets that contributed the most to the gains, Ethereum just edged out bitcoin in total realized gains globally, at $76.3 billion to $74.7 billion.
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“We believe this reflects increased Ethereum demand as a result of the rise of DeFi (decentralized finance) in 2021, as most DeFi protocols are built on the Ethereum blockchain and use Ethereum as their primary currency.” While the majority of countries follow this pattern, there are a few notable exceptions. “Japan, for example, received a much larger share of realized bitcoin gains, at just under $4 billion, compared to $790 million in realized Ethereum gains,” the report continued.
According to the data, not only are crypto asset prices rising, but cryptocurrency is still a source of economic opportunity for users in emerging markets.
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