Thanks to DeFi, ETH Overtakes BTC in Crypto Profits

Source: Adobe / bizoo_n

According to the blockchain intelligence company decompositionEthereum (ETH(Bitcoin Override)BTC) in the ranking of the best cryptocurrencies for profits Worldwide, $76.3 billion in cash was earned last year, compared to $74.7 billion in cash earned from bitcoin.

decomposition In his latest report, he wrote that the biggest profits for ETH holders are likely to be As a result of the increase in decentralized finance (DeFi) in 2021Note that DeFi applications are mostly based on Ethereum, with ETH being the base currency.

“Our crypto earnings analysis should be encouraging for the cryptocurrency world and reflect the growth of the ecosystem in 2021, especially DeFi,” the report’s authors said.

However, not all countries follow the same pattern of higher realized profits among ETH investors than BTC investors. at JapanBTC investors were responsible for a much higher share of the total cryptocurrency profits, with profits of $4 billion in BTC compared to just $790 million in ETH.

Bitcoin and Ethereum price

At 16:06 UTC, BTC was trading at $42,139, up 3% in a month and down 25% in a year. ETH was valued at $3,105 and increased by 7% in one month and 34% in one year.

Overall, on all tracks of cryptocurrency analysis, investors worldwide generated a total profit of $162.7 billion last year, up from $32.5 billion in 2020.

Moreover, the report states that United State Topping the rankings of countries with the largest profits from cryptocurrency by a “large margin”.

The country recorded $46.95 billion in profits last year, well above the number two on the list United kingdomwhich saw $8.16 billion in profits.

The The United States and the United Kingdom followed by Germany, Japan and China As the top five countries in terms of cryptocurrency gains made last year.

Among those, China It emerged as particularly interesting, as Chainalysis said it has seen a decline in investment activity in cryptocurrencies compared to other countries. The report says that with an annual growth rate of 194% in realized profits, the growth in China is much lower than the growth in the United States, for example, which recorded a growth of 476% during the same period.

The decline in growth in China is believed to be linked to a massive government crackdown on most crypto-related activities in the country, including mining operations and new trading bans.

Finally, Chainalysis notes in its report that many countries are far higher in terms of earnings from cryptocurrencies than traditional economic metrics.

For example, file turkey, a country that ranks 11th in terms of GDP (on a purchasing power parity basis) and which has experienced very high inflation, is ranked sixth in terms of earnings from cryptocurrencies. Similarly, Vietnam, which ranks 25th, came in at 16th in terms of the largest gains in the cryptocurrency.

The results support the idea that many developing countries have adopted cryptography for a variety of real-world use cases. Chainalysis said this includes remittances and the use of cryptocurrencies as a hedge against inflation and currency devaluation.


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to know more:
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