The cryptocurrency market has shown an unprecedented appetite for growth over the past two years. This has been a windfall for many investors, according to a new report from blockchain data platform Chainalysis.
The report said crypto investors posted total profits of $162.7 billion in 2021, about $130 billion more than a year earlier. The wealth of crypto investors has been propelled by unprecedented growth in crypto assets, with Bitcoin jumping a whopping 64 percent last year and Ethereum jumping 393 percent.
Most of those who won last year’s crypto rally came from the US, earning an estimated $47 billion, 476 percent. They were followed by investors in the UK (431 percent gain), Germany (43 percent gain), Japan and China.
Last year, China’s total cryptocurrency gains were $5.1 billion, up from $1.7 billion in 2020 (194 percent yoy growth). The relatively low level of growth reflected Beijing’s crackdown on crypto-related trading activity in the second half of 2021.
China’s major crackdown on crypto began in May when it banned financial institutions and payment companies from offering crypto-related services. Then, in September, it struck a blanket ban on all crypto transactions and mining in the country.
India was placed in 21st position with realized profits of about $1.85 billion.
Last year’s data showed that cryptocurrency continues to be a source of economic opportunity for users in emerging markets. However, cryptocurrencies have not reflected the same growth momentum this year as regulators worldwide consider ways to regulate the emerging sector.
With the industry showing less need for growth, the focus has shifted to related sectors such as the NFTs or non-replaceable tokens.
But experts hope crypto trading will bounce back in the remainder of 2022, bringing greater prosperity to those who have invested in the sector.