So far, 2021 is the golden year for crypto investment. It was a year of massive institutional adoption for crypto and multiple all-time highs. As we look back, a crypto investment in early 2021 would have been highly successful despite all the volatility. Despite all volatility, regulatory threats and bear market, investors’ profit grew a staggering %400 percent as compared with 2020. After all, turns out crypto investment was a pretty solid financial decision in 2021. And as for the year to come, only time can tell.

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Chainalysis on Crypto Investment

According to a new report by top data analytics firm Chainalysis, investing in crypto has been highly profitable in 2021. Primarily, we can see that by taking a look at the realized total gains which is upwards of $162.7 billion. To put that in perspective, investors had a total of only $32 billion in 2020.

According to the firm, United States stands on top by a long shot at an estimated $47 billion in realized cryptocurrency gains. So, as far-right republicans like to put it, “America First!”. Following the US’s lead, United Kingdom, Germany, Japan and China are the next countries in the ranks.

Interestingly, Bitcoin was not the top paying crypto investment. Instead, Ethereum managed to edge out BTC in total realized gains at $76.4 billion which is higher than Bitcoin’s $74.7 billion. According to Chainalysis, this could be due to growing demand in DeFi.

“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. While most individual countries follow this pattern, there are some notable exceptions. Japan, for instance, received a much higher share of realized gains from Bitcoin at just under $4.0 billion, compared to just $790 million in realized Ethereum gains,”

Best and Worst Performers

While the %400 growth in total realized gains is an average, it is also intriguing to see how different countries performed.

China, managed to record a growth of %194 in 2021 with a total estimated realized crypto gains of $5.1 billion. As impressive as it sounds, this is substantially lower than other countries and far below the average growth rate. Primarily, the lower growth rate is due to China’s brutal crackdowns on cryptocurrencies.

On the other hand, United States realized gains surged %476 moving up from $8.1 billion to $47 billion. UK had a %431 increase and Germany witnessed %423 growth.

“Our analysis of cryptocurrency gains should be encouraging to the cryptocurrency world, and reflects the growth of the ecosystem in 2021 — especially in DeFi. While there are still risks the industry must work to mitigate, the data not only shows that crypto asset prices are growing, but also indicates that cryptocurrency remains a source of economic opportunity for users in emerging markets,” said Chainalysis.

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