Ethereum (ETH) leads Bitcoin (BTC) in the ranking of cryptocurrencies by earnings globally, with $ 76.3 billion withdrawn in fiat earnings last year compared to $ 74.7 billion in earnings for Bitcoin, according to the blockchain intelligence community chain analysis.
The higher profits that have been achieved by ETH holders are likely the result of the increase in decentralized financing (DeFi) in 2021, Chainalysis writes in this document, noting that DeFi applications are primarily built on Ethereum.
“Our analysis of cryptocurrency earnings should be encouraging for the crypto industry and reflect the growth of the ecosystem in 2021 – especially in DeFi,” the report authors said.
However, the results from some countries follow a different pattern in terms of profits from ETH investors and BTC investors. In Japan, BTC investors accounted for a much larger share of the cryptocurrency gain, with $ 4 billion in profits in BTC compared to just $ 790 million in ETH.
Across all cryptocurrencies tracked by Chainalysis, investors worldwide achieved total gains of $ 162.7 billion last year, up from $ 32.5 billion in 2020.
In addition, the report states that the United States tops the list of countries that have earned the most on cryptocurrencies “by a significant margin.”
The country saw realized profits of $ 46.95 billion last year, an amount significantly higher than number two on the list – the UK – which had a profit of $ 8.16 billion.
The United States and the United Kingdom are followed by Germany, Japan and China.
Among them, China stands out in particular, where Chainalysis claims that investment activity in the country’s crypto sector has declined compared to others. With a growth rate of 194% year-on-year realized earnings, the progress of this indicator in China is significantly lower than, for example, in the United States, which has grown by 476% in the latter part of the same period. says the report.
The weaker growth in China is believed to be linked to the government’s unprecedented repression of most cryptocurrency-related activities in the country, including new bans on mining and trade.
Finally, Chainalysis notes in its report that several countries are significantly better placed in terms of gains made in cryptocurrencies compared to traditional economic indicators.
For example, Turkey, a country that is in 11th place in relation to gross domestic product (GDP, based on purchasing power parity) and which has had to deal with very high inflation, ranks 6th. Similarly, Vietnam, which ranks 25th, came in 16th place in cryptocurrency earnings.
The results support the idea that many developing countries have embraced cryptocurrencies for a range of real-world uses. These include money transfers and their use as a way to hedge against inflation and currency devaluation, Chainalysis said.
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