The cryptocurrency market has witnessed a notable rebound as the average investor realized gains of $887.60 for 2023, a study by CoinLedger, a cryptocurrency tax software platform, reveals.
This marks a significant recovery from the turmoil of 2022 when investors faced over $7,000 in losses due to collapsing crypto firms and a severe bear market.
David Kemmerer, CEO of CoinLedger, commented,
“It’s clear that the cryptocurrency market is growing once again.”
He referred to the industry’s comeback after the dramatic price drops following the FTX collapse, underlining the sector’s resilience.
Data for the report was derived from CoinLedger’s substantial user base of over half a million crypto investors. The user demographics show that 80% are based in the United States, with others spread across Australia (6%), Canada (5%), and various other countries.
In 2023, Ether emerged as the most disposed of cryptocurrency among CoinLedger users, by transaction count. Solana, Bitcoin, BNB, and Polygon also featured prominently in the top five disposed of assets.
The study also highlighted that, while Bitcoin remains the world’s most popular cryptocurrency, it only ranked third in terms of disposal rates among CoinLedger users, supporting the view that Bitcoin holders are less inclined to sell compared to holders of other cryptocurrencies.
In addition, Ethereum led the pack for the most blockchain transactions imported into the tax platform, followed by Bitcoin, Binance Smart Chain, Polygon, and Avalanche C-Chain.
Coinbase dominated as the most imported centralized exchange among the predominantly U.S.-based users of CoinLedger. Despite Coinbase Pro’s features transitioning to Coinbase.com, it retained fourth place, while Crypto.com and Kucoin held the second and fifth spots for most imported transactions.
Despite facing legal and regulatory challenges in 2023, including a multi-billion dollar settlement with U.S. authorities, a lawsuit from the SEC, and a contraction in market share, Binance.US maintained its position as the third most imported exchange on CoinLedger. The SEC also brought a lawsuit against Coinbase in the same year.