2023 marked a year of recovery for the cryptocurrency market, with asset prices and investor sentiment improving significantly after a challenging 2022. Below, we analyze estimated cryptocurrency earnings based on investor interactions with centralized exchanges, including a country-by-country breakdown.
Methodology: Calculating Cryptocurrency Gains
We estimate crypto earnings using on-chain data, measuring the flow of select assets (representing ~80% of total crypto market cap) through major exchanges offering crypto-to-fiat conversions. Key steps:
- Asset Flow Analysis: Calculate the difference between the USD value of withdrawals and deposits per asset to determine collective gains.
- Country Allocation: Distribute earnings by country based on each nation’s share of web traffic to these services.
Total 2023 Crypto Earnings: $37.6 billion — a rebound from 2022’s $127.1 billion loss but below 2021’s $159.7 billion peak.
Key Trends:
- Stable growth throughout 2023, with sharp spikes in November/December.
- Investors may have held assets longer in 2023, anticipating further price increases.
Country-Specific Crypto Earnings in 2023
| Rank | Country | Estimated Earnings (USD) |
|------|-----------------|--------------------------|
| 1 | United States | $9.36 billion |
| 2 | United Kingdom | $1.39 billion |
| 3 | Vietnam | $1.2+ billion |
| 4 | China | $1.1+ billion |
| 5 | Indonesia | $1.0+ billion |
| 6 | India | $1.0+ billion |
Notable Insight: Several middle-income countries (e.g., Vietnam, India) ranked among top earners, reflecting strong crypto adoption resilience post-bear market.
2024 Outlook
Positive 2023 trends have extended into 2024:
- Bitcoin ETF approvals and institutional adoption drove BTC/ETH to new highs.
YTD (March 13, 2024):
- Bitcoin: +65.4%
- Ethereum: +70.2%
👉 Explore real-time crypto trends
FAQ
Q: How accurate are these earnings estimates?
A: Estimates rely on exchange flow data and web traffic metrics, providing a robust approximation but not exact figures.
Q: Why did 2023 earnings lag behind 2021 despite similar growth rates?
A: Fewer investors likely cashed out in 2023, expecting prices to surpass previous highs (which didn’t occur).
Q: Which countries overperformed in crypto gains?
A: Vietnam, China, and India demonstrated exceptional adoption-to-earnings ratios.
For deeper insights, check our crypto adoption index.
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