The total income of crypto investors worldwide reached $162.7 billion in 2021. Realized profit of crypto-assets increased nearly fivefold. 

Crypto-Assets Profitability Grew by 400%

According to a report by Chainalysis, global profits from crypto-assets increased by 400% in 2021 compared to 2020 and amounted to $162.7 billion. In terms of realized profits, the leaders were American crypto investors, outpacing their closest competitors by more than $38 billion.

Investors from the United States accumulated a record $46.9 billion in realized crypto profits for 2021. Leading by a wide margin, the country also broke its own records, boosting the profitability of cryptocurrency assets by 476% compared to 2020.

The same trend has been observed in other countries around the world. For example, the UK saw a 431% increase in crypto profits to $8.2 billion. Crypto investors from Germany received $5.8 billion in profits, a 423% rise compared to 2020.

Chinese investors generated $5.1 billion in profits from cryptocurrency assets in 2021. However, the dynamics in the People’s Republic of China were lower than in other states. The gain in profitability was only 194% as compared to 2020. Chainalysis analysts argue that this decrease in activity in the country may be due to the Chinese government’s ban on crypto in connection with the CBDC launch.

According to Chainalysis, the most profitable token in 2021 was Ethereum (ETH). ETH made a total profit of $76.3 billion, beating the 2020 leader Bitcoin (BTC). However, Bitcoin investors also performed very well, generating $74.7 billion in 2021. Analysts believe that the ETH leadership trend is due to the growth of the DeFi sector in 2021, most of which protocols are built on Ethereum. Despite the decline in profitability dynamics, Bitcoin was still the leader in investment attractiveness in 2021.

The widespread adoption of cryptocurrencies around the world is shown in Chainalysis charts. More and more people are willing to use crypto-assets in their daily lives, and entrepreneurs are considering options to switch from fiat to crypto.

Author: Ana Bustos García
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