According to CoinLedger, a leading crypto tax software platform, the average crypto investor saw a gain of $887.60 in 2023. This is a significant increase compared to the previous year, which saw losses of over $7,000 per investor due to the collapse of major crypto firms and a bear market.
In a press release, CoinLedger CEO David Kemmerer stated that this rebound in profits highlights the growth of the crypto industry from 2022 to 2023. This growth can be attributed to the recovery after the downfall of FTX, which led to a decline in asset prices in the crypto market.
These insights were derived from an analysis of data from CoinLedger’s user base, which consists of over 500,000 investors primarily from the United States. The study also revealed that Ethereum (ETH) was the most commonly traded cryptocurrency among CoinLedger users in 2023, followed by Solana, Bitcoin, Binance Coin (BNB), and Polygon.
Interestingly, despite Bitcoin’s global popularity, it ranked third in terms of disposals, implying that Bitcoin investors may be more inclined to hold onto their assets compared to those investing in other cryptocurrencies. Additionally, Ethereum also had the highest volume of blockchain transactions imported into CoinLedger’s tax software, followed by Bitcoin, Binance Smart Chain, Polygon, and Avalanche C-Chain. The most popular centralized exchange among CoinLedger’s predominantly American user base was found to be Coinbase.
The report also discussed Binance’s challenging year, including a $4.3 billion settlement with U.S. authorities and a lawsuit from the Securities and Exchange Commission. However, despite these setbacks, Binance.US still ranked high for CoinLedger imports.
In conclusion, the crypto market saw a significant rebound in 2023, with Ethereum leading the way in terms of trading and blockchain transactions. Bitcoin remained a popular asset, but investors seemed more inclined to hold onto it rather than dispose of it. Coinbase and Binance.US were the most popular exchanges among CoinLedger users.