Chainalysis: Crypto profits surged by 400% in 2021

Chainalysis: Crypto profits surged by 400% in 2021

As per Chainalysis, worldwide crypto investor profits surged by 400% in 2021. 

On Wednesday, a report published by Chainalysis stated that worldwide investor gains surged from $32.5 bn in 2020 to $162.7 bn in 2021. 

Furthermore, bitcoin and ethereum – the two most valuable cryptos, hitting an all-time high influenced the 400% surge. 

Crypto investors realized total gains of 400%

Worldwide, crypto investors gained a 400% profit due to a surge in bitcoin and ether. 

Bitcoin ended 2021 with a 60% rise at $46,300. 

Nevertheless, the token currency for ethereum, Ether, surged 400% in 2021 to $3,650. 

According to Chainalysis, ethereum beat bitcoin in realized gains worldwide at $76.3 bn compared to $74.7 bn. 

Furthermore, Chainalysis said, “We believe this reflects increased demand for Ethereum as the result of DeFi’s rise in 2021, as most of DeFi protocols are built on the Ethereum blockchain and use Ethereum as their primary currency.”

Worldwide crypto investor profits

A rise in exposure and interest in crypto by institutional and retail investors led to an all-time high for bitcoin in 2021. 

Furthermore, both cryptos hit an all-time high last year in November. 

As per, bitcoin surged as high as $69,044.77, while ether sored at $4,878.26. 

US crypto investors beat China, Japan, the UK, and Germany by logging $47 bn in crypto profits. 

Nevertheless, in 2021, China’s crypto gains surged to $5.1 bn from $1.7 bn in 2020, for a y-o-y growth rate of 194%.

However, the UK crypto investors gained $8.2 bn from crypto. 

The firm further said, “however, like last year, we see many countries whose collective cryptocurrency investment performance seems to be outperforming their rankings in traditional measures of economic prosperity.”

Additionally, India stood 21st with realized gains of $1.85 bn. 

The report also said, “while that may sound substantial, it represents a lower growth rate than other countries’.”

“The United States, for instance, saw estimated realized cryptocurrency gains grow 476%, from $8.1 billion to $47.0 billion.”

“Other countries’ cryptocurrency gains grew at similar rates – the UK, for instance, saw a 431% increase, while Germany’s gains grew by 423%.”


As crypto gains global popularity, a 400% profit surge was inevitable. 

Also Read – New tax laws negatively impact cryptocurrency this week

Johannah is a passionate traveler. She is seeking remote places across India and exploring the benefits of being a Nomad. She has completed her bachelor's in Psychology Hons and diploma in Graphology. Being able to write helps her to share her experiences and be independent to travel anywhere.

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