The crypto investments landscape witnessed a notable shift in 2023, as revealed by a study from CoinLedger, a prominent crypto tax software platform. Compared to the tumultuous market conditions in 2022, the average crypto investor 2023 experienced a modest yet significant upturn in their financial outcomes.
The study indicates that the typical investor realized less than $1,000 in gains, marking a recovery from the previous year, where losses were the norm amid a severe bear market.
Average Investor Crypto Gains In 2023
CoinLedger’s analysis shows that the average realized gains for digital currency investors in 2023 amounted to $887.60. This figure represents a substantial recovery from 2022, when investors faced an average loss exceeding $7,000 due to the collapse of several major crypto firms and a broader market downturn.
The resurgence in 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 across its user base of over 500,000 investors, provides insights into this changing landscape.
A large number of about 80% of these users, according to Kemmerer are from the United States, with fewer from Australia, Canada, and other countries.
Despite being the world’s most popular digital currency, Bitcoin’s standing in the market was the third “most disposed” of digital currency in 2023, according to CoinLedger.
In this context, “most disposed” refers to the digital currency investors sell or trade most frequently. It particularly indicates the digital assets that saw the highest selling or trading activity volume within the specified timeframe.
Therefore, in this case, Bitcoin ranked third in terms of how often it was sold or traded by investors during that period. Notably, this suggests a tendency among Bitcoin holders to retain their assets longer than investors in other digital currencies.
On the other hand, Ethereum led in terms of the number of blockchain transactions imported to the tax software, followed by Bitcoin, Binance Smart Chain, Polygon, and Avalanche C-Chain.
The Global Crypto Market’s Growth Trajectory
As the next Bitcoin halving draws near, Bitcoin (BTC) has shown a steady increase in value, signaling a robust recovery of the digital currency market from the challenges faced in 2022, notably those involving FTX and Terra Luna crash, amongst others.
Over the past year, Bitcoin has experienced a surge of 88%, escalating from trading below $25,000 this time last year to trading above $43,000. This rise, amounting to nearly 10% in recent weeks, underscores the market’s growing strength.
This substantial increase in Bitcoin’s value has had a positive ripple effect across the global digital currency market. Other major altcoins, including Ethereum, have also witnessed significant growth – over 40% in the past year.
This notable performance of these leading crypto assets has propelled the global crypto market’s capitalization from just under $1 trillion at the start of the previous year to over $1.7 trillion.
Furthermore, some analysts believe this growth trend is only the beginning of the crypto market. A crypto researcher known by the pseudonym Ether Nasyona recently forecasted that the total market capitalization of global cryptocurrencies could reach roughly $8 trillion by 2025.
TOTAL MARKET CAP!
Between January 2015 and January 2018, 155 bars were processed from the bottom to the local peak!
Between december 2018 and november 2021, 152 bars were processed from the bottom to the local peak!
Looking at the last two Cycles, if we take the November 2022… pic.twitter.com/QIr5Mhr9JM
— EᴛʜᴇʀNᴀꜱʏᴏɴᴀL 📈 (@EtherNasyonaL) December 30, 2023
Featured image from Unsplash, Chart from TradingView