2021 was not just the year of institutionalization of crypto and new all-time highs — it also turned out to be the biggest year to date for crypto philanthropy.
According to research data from The Giving Block, the crypto donation volume rose to $69.6 million in 2021 compared to $4.2 million in 2020. Crypto donation volume spiked 1,558% or nearly 16x over the same period. The average crypto donations also saw a 236% increase, rising from an average of $3,109 in 2020 to $10,445 in 2021.
The data further revealed that the average crypto donation size was 82x larger than the average cash donation. The average donation in crypto was estimated at $10,455 compared to $128 in cash.
The monthly donation data revealed several interesting aspects about crypto donors. The report highlighted that the crypto donations were highest in the final four months of 2021. The donations volume also peaked with each month, where January saw a total volume of $300,000, while December’s total donation volume surpassed $20,000,000. 42% of the total crypto donations in 2021 came in the last two months.
The research attributed this increase to the bull market and the growing adoption of digital assets among the common public as well as nonprofit organizations. The research report revealed more than 1,000 nonprofit organizations were accepting crypto donations by the end of 2021.
The crypto donation volume rose each quarter in 2021, where the first quarter saw a total volume of $1.69 million and that value grew to $43.1 million in the fourth quarter. A total of 70 cryptocurrencies were used for donations, with Ether being the top donation choice followed by Bitcoin (BTC) and USD Coin (USDC) stablecoin. Eighty-five percent of all crypto donations in 2021 were made in BTC, Ether (ETH) and USDC.
The crypto donation data is a reflection of the growing popularity of digital currency use among activists, politicians and even shadow governments. 2021 saw Bitcoin at the Hong Kong protest. Myanmar’s shadow government fighting against the current military regime has also declared Tether’s USDT as their official currency of use locally. Blockchain makes crypto assets borderless, which has made it a top choice for donations.