The year 2023 was a year of notable recovery, culminating in investors amassing gains totaling $37.6 billion, according to Chainalysis. This resurgence comes after a tumultuous 2022, which left the market in a state of estimated losses exceeding $127.1 billion. The Chainalysis team employed a comprehensive methodology to approximate the gains accrued from cryptocurrency investments.
By analyzing the macro-level flows of assets that represent about 80% of the total market capitalization, the team could estimate gains based on the net difference between the dollar value of assets withdrawn and those deposited. This approach assumes that deposits into services allowing fiat conversion potentially signal the realization of gains or losses.
The United Kingdom followed with $1.39 billion in gains, but the report also highlights impressive performances from middle-income countries, particularly in Asia. Nations like Vietnam, China, Indonesia and India not only surpassed the $1 billion mark in estimated gains but also demonstrated robust crypto adoption rates. In 2024, major cryptocurrencies like Bitcoin have already experienced remarkable growth. The crypto king is up 69% on a year-to-date basis following the approval of Bitcoin ETFs and heightened institutional adoption.