Crypto Investors Earn $162.7 Billion in 2021; US Investors Lead Pack: Chainalysis Report

A recent report by the Singapore-based Blockchain data platform, Chainalysis, has revealed that investors in crypto assets made $162.7 billion in earnings in 2021, more than three times the earnings of $32.5 billion in 2020. 

The US led by a broad margin with an estimated $47.0 billion in realised cryptocurrency earnings, followed by the UK, Germany, Japan, and China. India was ranked at the 21st place with realised incomes of around $1.85 billion.

“While that may sound substantial, it represents a lower growth rate than other countries. The United States, for instance, saw estimated realised cryptocurrency gains grow 476 per cent, from $8.1 billion to $47.0 billion. Other countries’ cryptocurrency gains grew at similar rates — the UK, for instance, saw a 431 per cent increase, while Germany’s gains grew by 423 per cent,” the report said.

It is important to note that in 2021, China’s total estimated realised cryptocurrency gains were $5.1 billion, up from $1.7 billion in 2020, for a year-on-year growth rate of 194 per cent. 

Also, China’s lower growth rate probably mirrors the fall in the country’s cryptocurrency activity in the wake of government sanctions. In terms of crypto assets that contributed most to the gains, Ethereum (ETH) just edged out Bitcoin in total realised gains worldwide at $76.3 billion to $74.7 billion. 

“We believe this reflects increased demand for Ethereum as a result of DeFi’s (decentralised finance) rise in 2021, as most DeFi protocols are built on the Ethereum Blockchain, and use Ethereum as their primary currency. While most individual countries follow this pattern, there are some notable exceptions. Japan, for instance, received a much higher share of realised gains from Bitcoin at just under $4 billion, compared to just $790 million in realised Ethereum gains,” the report added. 

The Chainalysis analysis report further noted that cryptocurrency gains should be encouraging to the cryptocurrency world, and reflects the growth of the ecosystem in 2021, especially in DeFi. 

“While there are still risks the industry must work to mitigate, the data not only shows that crypto asset prices are growing, but also indicates that cryptocurrency remains a source of economic opportunity for users in emerging markets,” the statement adds.