American Investors Led in Realized Crypto Gains in 2021

Emerging markets continued to hold their assets against inflation in 2021, according to Chainalysis’ latest report.

In 2021, Ethereum and BTC hit their highest level in history and attracted incredible institutional investment. For the full year, investors worldwide made a total of $162.7 billion in profits in cryptocurrencies. This figure was $32.5 billion in 2020.

US-based investors were ahead of other investors with an estimated $47.0 billion in earnings. Meanwhile, emerging markets have shown quite a keen interest in cryptocurrencies.

Chainalysis’ Methodology

Chain Analysis Methodology
Blockchain analytics firm Chainalysis referenced transaction and web traffic data to perform geospatial analysis on cryptocurrencies and investor’s behavior .

By analyzing the assets invested in and withdrawn from exchanges, it estimated the total earnings from each asset. Secondly, by analyzing the web traffic distributed between different geographical regions on each exchange, the firm was able to predict the total earnings of digital assets by country.

Emerging Markets Embrace Cryptocurrencies

According to Chainalysis’s report, developed countries like America, UK and Germany are in the top three in cryptocurrency earnings.

Despite China imposing a sweeping ban on the industry, the country still ranks fifth with estimated digital asset earnings of up to $5.1 billion and annual growth of 194%.

The United States, for example, achieved year-over-year growth from $8.1 billion to $47 billion.

The report also noted that emerging economies whose aggregate gains in digital assets have outperformed worldwide GDP rankings may have chosen the asset class in response to domestic inflation.

Another critical point mentioned in the document is that Ethereum did quite well in 2021, with Bitcoin outpacing gains between $76.3 billion and $74.7 billion, with investors making more profits than ETH.

The reason why Ethereum functions as the primary currency for such events and protocols is partly due to the rise of DeFi. Additionally, the second largest blockchain is the main driving .

Related: Bitcoin hodlers targeting $100K is what’s preventing 40% price drawdown , According to data

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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