2023 Cryptocurrency Gains: A Look at Estimated Gains by Country

2023 witnessed a resurgence in the cryptocurrency market after a challenging 2022, with asset prices and market sentiment on the rise. Chainalysis, a leading blockchain analysis company, has provided valuable insights into the estimated gains made by cryptocurrency investors in various countries during the year.

Methodology for Calculating Cryptocurrency Gains and Country Estimates

Chainalysis employs a methodology based on on-chain data to estimate investors’ gains by tracking movements of crypto assets on centralized exchanges. By analyzing the flow of assets in and out of platforms offering crypto-to-fiat conversion, they estimate the collective gains made on each asset. These gains are then allocated to individual countries based on the web traffic share of each service’s website, providing an estimate of gains by country.

2023 Estimated Total Cryptocurrency Gains

Chainalysis estimates that global cryptocurrency investors achieved total gains of $37.6 billion in 2023. This marked a significant recovery from the estimated losses of $127.1 billion in 2022, though lower than the gains seen during the 2021 bull market.

Crypto gains were relatively stable throughout the year, with a notable increase in gains in November and December following two months of losses in August and September.

2023 Estimated Cryptocurrency Gains by Country

The United States led in cryptocurrency gains in 2023 with an estimated $9.36 billion, followed by the UK with $1.39 billion in gains. Interestingly, upper and lower middle-income countries like Vietnam, China, Indonesia, and India also achieved significant gains, with each surpassing $1 billion in estimated gains.

Chainalysis noted that countries in these income categories showed strong cryptocurrency adoption, which remained resilient even during the recent bear market, contributing to their substantial gains in 2023.

Outlook for 2024

The positive trends observed in 2023 have carried forward into 2024, with assets like Bitcoin hitting all-time highs. Increased institutional adoption and regulatory approvals have boosted the market, hinting at the potential for gains reminiscent of the 2021 bull market. As of March 13, Bitcoin is up 65.4% and Ether is up 70.2% in 2024.

It will be interesting to follow the evolving cryptocurrency landscape and see how investors around the world continue to engage with this evolving asset class.

Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Readers are advised to consult with their own advisors before making any financial decisions. Chainalysis does not warrant the accuracy or validity of the information provided.