Crypto investors made $37.6 billion in estimated total gains last year, blockchain intelligence firm Chainalysis said Thursday. The gains mark crypto’s recovery from the $127.1 billion in losses in 2022, a year plagued by numerous failures and bankruptcies that were seen in major names such as FTX and Terra-Luna.

Profits made in 2023, however, were much smaller than those achieved during the 2021 bull market, which amounted to around $159.7 billion, according to Chainalysis. 

“One possible explanation for this could be that investors in 2023 were less likely to convert crypto assets into cash, under the expectation that prices would rise even higher given that they didn't surpass previous all-time highs at any point in 2023, unlike in 2021,” Chainalysis said in its report.

Last year, bitcoin’s value rose over 150% in anticipation of spot bitcoin exchange-traded fund approvals in the U.S. The bitcoin price has continued to soar so far this year, recently hitting its all-time high of $73,604, according to The Block price data. The GMCI 30 Index, which reflects a selection of the top 30 cryptocurrencies, has also achieved a 63.5% growth year-to-date.

Middle income countries show resilience

By countries, the U.S. recorded the highest cryptocurrency gains last year by a substantial margin, with an estimated $9.36 billion. The UK followed with $1.39 billion. Chainalysis noted that some upper and lower middle income countries in Asia — namely Vietnam, China, Indonesia and India — recorded gains of above $1 billion, placing them within the list’s top six. 

“Countries in these income categories, and lower middle income countries in particular, showed strong cryptocurrency adoption that remained notably resilient even through the recent bear market,” Chainalysis said. “Our gains estimates suggest that many investors in those countries have benefited from their embrace of the asset class.”