The Average Crypto Investor’s Gains in 2023
The average crypto investor made $887.60 in realized gains for 2023, according to a study by cryptocurrency tax software platform CoinLedger.
Last year’s average gains mark a significant turnaround following the turmoil of 2022, when the average investor realized over $7,000 in losses amid the collapse of several crypto firms and a severe bear market.
“It’s clear that the cryptocurrency market is growing once again.” CoinLedger CEO David Kemmerer said in a statement. “After the collapse of FTX, the cryptocurrency ecosystem saw a freefall in asset prices. This latest rebound highlights the resilience of the industry.”
Ether was the Most Disposed Cryptocurrency
Ether was the most disposed of cryptocurrency by transaction count among CoinLedger’s users in 2023. Solana, Bitcoin, BNB, and Polygon made up the remainder of the top five, respectively.
“Despite Bitcoin being the most popular cryptocurrency in the world, it was only the third most disposed of cryptocurrency,” CoinLedger said. “The data supports the narrative that Bitcoin holders are less likely to dispose of their coins than investors of other cryptocurrencies.”
Ethereum led in terms of the most imported blockchain transactions to the tax software platform — with Bitcoin, Binance Smart Chain, Polygon, and Avalanche C-Chain rounding out the top five.
Top Imported Exchanges and Legal Troubles
Unsurprisingly, given the dominant U.S. residency of CoinLedger’s users, Coinbase was the most imported centralized exchange last year. Coinbase Pro was still in fourth place despite the phased transition of its advanced trading features to Coinbase.com. Crypto.com and Kucoin had the second and fifth most imported transactions, respectively.
Although 2023 was a disastrous year for Binance on the legal and regulatory front — involving a $4.3 billion settlement with U.S. authorities, a lawsuit filed against it by the Securities and Exchange Commission alleging a violation of securities laws, significant related layoffs, and a reduction in market share — Binance.US remained in third place for CoinLedger imports. The SEC also filed a lawsuit against Coinbase last year.
Hot Take: Crypto Investors Rebound in 2023
The average crypto investor experienced a positive turnaround in 2023, with significant gains compared to the losses of the previous year. This growth signifies the resilience of the cryptocurrency market despite challenges like the collapse of FTX and regulatory issues faced by major exchanges like Binance and Coinbase. Ether emerged as the most disposed of cryptocurrency among investors, while Ethereum led in terms of imported blockchain transactions. CoinLedger’s report provides valuable insights into the behavior and preferences of crypto investors, showcasing the ongoing development and potential of this industry.
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