Ethereum contributed over $2 billion more to total realised crypto gains globally than Bitcoin in 2021, according to a report. The contribution of Ethereum was $76.3 billion while Bitcoin contributed $74.74 billion of total realised gains globally in the previous year, a recent Chainalysis report said.
Calling it the “most notable trend”, the report said, “Ethereum just edged out Bitcoin in total realized gains globally at $76.3 billion to $74.7 billion.”
Rise of Decentralised Finance (DeFI) was the prime reason behind increased demand of Ethereum last year.
“We believe this reflects increased demand for Ethereum as the result of DeFi’s rise in 2021, as most DeFi protocols are built on the Ethereum blockchain and use Ethereum as their primary currency,” the report said.
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Interestingly, a few countries were “notable exceptions”. For instance, Japan received a higher share of realised gains from Bitcoin at around $4 billion compared to $790 million of Ethereum gains.
According to the report, crypto investors around the world realised total gains of 162 billion in 2021 as compared to just 32.5 billion in 2020. Investors in the United States realised most of the gains at approximately $47 billion, following by the UK, Germany, Japan and China. However, the rate of growth of realised gains from crypto in China was lower, primarily due to crackdowns on crypto activities the country.
Commenting on the report, Shivam Thakral, CEO of BuyUcoin said, “It’s a great encouragement for crypto community across the globe to see that crypto investors have made handsome profits by putting their faith in crypto assets. The increase from profits of $32.5 billion in 2020 to $162.7 billion in 2021 testifies to the fact that during the second phase of the pandemic, investors chose the crypto market over traditional ones to beat inflation and create wealth in the times of crisis. India with crypto gains of around $1.8 billion is impressive despite the regulatory fluctuations.”
Jennifer Lu, co-founder at Coinstore said, “Jennifer Lu, Cofounder at Coinstore said: “We are delighted to see that crypto gains across the globe have created another milestone. The exponential increase in crypto profits in 2021 underlines the fact that crypto as an investment class has performed better than the traditional asset class.”
(Cryptos and other virtual digital assets are unregulated assets in India. Investing in them could lead to losses. Please consult a professional financial advisor before making any investment decision in crypto)