Crypto investors worldwide achieved total gains of $37.6 billion in 2023, far lower than the $159.7 billion posted during the 2021 bull market, but representing a significant recovery from 2022, which saw estimated losses of $127.1 billion.

The US led the way in cryptocurrency gains by a wide margin in 2023 at an estimated $9.36 billion. The UK placed second with an estimated $1.39 billion in crypto gains, while Vietnam came in third with an estimated $1.18 billion.

Interestingly, Chainalysis's total gains estimate for 2023 is lower than 2021, despite crypto asset prices growing at similar rates in each of those two years. One possible explanation for this could be that investors in 2023 were less likely to convert crypto assets into cash, under the expectation that prices would rise even higher given that they didn’t surpass previous all-time highs at any point in 2023, unlike in 2021.

The report noted that there are several upper and lower middle income countries whose residents appear to have achieved outsized gains, especially in Asia. Vietnam, China, Indonesia, and India, for example, all hit over $1 billion in estimated gains, and place in the top six globally.

According to the 2023 Geography of Cryptocurrency Report by Chainalysis, countries in these income categories, and lower middle income countries in particular, showed strong cryptocurrency adoption that remained notably resilient even through the recent bear market. Chainalysis inferred many investors in those countries have benefited from their embrace of the asset class.

So far, the positive trends of 2023 have carried over into 2024, with notable crypto assets like Bitcoin achieving all-time highs in the wake of Bitcoin ETF approvals and increased institutional adoption. If these trends continue, it is expected to see gains more in line with those in 2021. As of March 13, Bitcoin was up 65.4 per cent and Ether was up 70.2 per cent in 2024.