A recent study shows that the typical investor made less than $1,000 in profits, marking a recovery from the previous year, where losses were the norm amid a severe bear market.

The cryptocurrency investment landscape witnessed a notable change in 2023, as revealed by a study by CoinLedger, a prominent cryptocurrency tax software platform. Compared to the tumultuous market conditions in 2022, the average crypto investor in 2023 experienced a modest but significant rebound in their financial results.

Investors’ Average Crypto Earnings in 2023

CoinLedger analysis shows that the average profits earned by digital currency investors in 2023 amounted to $887.60. This figure represents a substantial recovery from 2022, when investors faced an average loss of more than $7,000 due to the collapse of several major crypto companies and a broader market crash.

The resurgence of the digital currency market has been underlined by the “resilience” and “adaptability” of investors and the industry. David Kemmerer, CEO of CoinLedger, revealed that the study, compiled from data from its user base of more than 500,000 investors, provides insight into this changing landscape.

According to Kemmerer, a large number of these users, around 80%, are from the United States, and fewer from Australia, Canada and other countries. Despite being the most popular digital currency in the world, Bitcoin’s market position was the third “most dumped” digital currency in 2023, according to CoinLedger.

In this context, “most willing” refers to the digital currency that investors sell or trade most frequently. It particularly indicates the digital assets that experienced the highest volume of selling or trading activity within the specified time period.

Therefore, in this case, Bitcoin ranked third in terms of how often investors sold or traded it during that period. In particular, this suggests a tendency among Bitcoin holders to hold onto their assets longer than investors in other digital currencies.

On the other hand, Ethereum led in terms of number of blockchain transactions imported into tax software, followed by Bitcoin, Binance Smart Chain, Polygon, and Avalanche C-Chain.

Global Crypto Market Growth Trajectory

As the next Bitcoin halving approaches, Bitcoin (BTC) has shown a steady increase in its value, indicating a strong recovery of the digital currency market from the challenges it faces in 2022, particularly those that they involve the fall of FTX and Terra Luna, among others.

Over the past year, Bitcoin has seen an 88% surge, going from trading below $25,000 this time last year to trading above $43,000. This increase, which has risen to almost 10% in recent weeks, highlights the market’s growing strength.

This substantial increase in the value of Bitcoin has had a positive ripple effect throughout the global digital currency market. Other major altcoins, including Ethereum, have also seen significant growth – more than 40% last year. This remarkable performance of these leading crypto assets has boosted the global crypto market capitalization from just under $1 trillion at the beginning of last year to over $1.7 trillion.

Furthermore, some analysts believe that this growth trend is just the beginning of the cryptocurrency market. A crypto researcher known by the pseudonym Ether Nasyona recently predicted, via X, that the total market capitalization of global cryptocurrencies could reach approximately $8 trillion by 2025.

By Audy Castaneda


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