Cryptocurrency donations have increased 16-fold over the year 2021


Cryptocurrency donations have increased 16-fold over the year 2021



Over the course of 2021, the cryptocurrency market has been very generous with many people. And these have known how to be generous in return, as evidenced by The Giving Block's recent report: cryptocurrency donations have increased 16-fold over the year 2021. And these have known how to be generous in return, as evidenced by The Giving Block's recent report: cryptocurrency donations have increased 16-fold over the year 2021.

 

16 times more donations in cryptos

Over the course of 2021, the cryptocurrency market, like the king of Bitcoin (BTC), has graced us with insane performances and a succession of new all-time highs. Behind these head-turning figures, it has also generated much more concrete actions, notably on the charity side.

In a report published by The Giving Block, we learn that the crypto-community has been extremely generous in 2021. The volume of total cryptocurrency donations reached $69,644,535, a significant increase of about 1558% compared to the year 2020.

Furthermore, the average donation value was $10,455, an increase of 236% compared to the previous year. Not surprisingly, cryptocurrency donors were the most generous. In comparison, the average traditional fiat donation is estimated at around $128.


Cryptocurrency donations have increased 16-fold over the year 2021


 

      Statistics on cryptocurrency donations in 2021.

More broadly, it is interesting to contrast these two statistics. If the average donation value has "only" doubled, but the total amount distributed has increased 16-fold, then the number of unique donors has likely exploded in a single year.


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Some key figures to remember.

Surprisingly enough, the volume of donations has continued to rise month after month, regardless of the fluctuations in the cryptocurrency market. While January recorded $300,000 in donations, no less than $20 million was donated to charity in December.


2021 Cryptocurrency Donations by Month

Percentage of Crypto Donations Made Each Month

Cryptocurrency donations have increased 16-fold over the year 2021



Statistics on cryptocurrency donation volumes in 2021 

In total, more than 70 different cryptocurrencies were distributed for charity. For the first time, it was not Bitcoin but Ether (ETH) that was the most donated in 2021, totaling a volume of $30.79 million. In addition, stablecoins were also a popular solution for donors, most notably DAI and USDC. 

Finally, the most important market trend of 2021 has been non-fungible tokens (NFTs). These have proven to be a major force in charitable giving, with more than $12.3m being donated by projects, artists, and even NFT platforms.

 

What are the different reasons for this?

In its report, The Giving Block questioned the reasons behind such high volumes of donations. Logically enough, this can be attributed to the decidedly upward market trend and the increasing adoption of digital assets worldwide.

On the other hand, more and more non-profit organizations have been rethinking their positions and finally accepting donations in cryptocurrencies. As such, there were over a thousand of them by the end of 2021.

As one of the most widely used donation mediums, The Giving Block also played a prominent role in this philanthropic year. First of all, they organized #CryptoGivingTuesday, an entire day dedicated to cryptocurrency giving. Held on November 30, 2021, this one raised about $2.4 million in just 24 hours.

Finally, the association has been responsive to donors and market trends. The simple act of exchanging stablecoins for Ether, even for the strict purpose of making a charitable donation, is considered a taxable transaction, which can put many people off. Thus, The Giving Block decided to allow donations in USDC, which eventually accounted for $4.73 million of the total balance.

Interestingly, the introduction of the Shiba Inu (SHIB) also attracted a lot of new donors. Memecoin quickly became the fourth most donated cryptocurrency in the month of its introduction.


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