Crypto investors around the World earned $163 billion in gains in 2021

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Crypto investors around the World earned $163 billion in gains in 2021
22 Apr 2022
6 min read

News Synopsis

According to Chainlysis, Cryptocurrency investors around the globe earned 400% more in profit in the year 2021 than the previous year. This increase in growth was fueled by price increases to all-time highs for the two most valuable cryptocurrencies. According to a report published by cryptocurrency data firm, Chainalysis,  Investors clocked total gains of $162.7 billion in the year 2021, an increase from $32.5 billion in the year  2020. The increase in prices of Bitcoin and Ethereum is one of the major reasons behind the exceptional growth.

Bitcoin, the world's most traded cryptocurrency, soared 60% to finish 2021 at about $46,300. Ether, the token currency for the Ethereum blockchain network, rose about 400% in 2021, landing at around $3,650. The firm further informed that Ethereum outperformed bitcoin in total realized gains worldwide at $76.3 billion compared with $74.7 billion. Chainlysis said, "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.” DeFi refers to decentralized finance, which includes crypto lending and borrowing platforms.