Ethereum Beats Bitcoin In Donations In 2021

February 2, 2022 8:19 pm

The Giving Block is a platform that allows users to donate crypto to a variety of different charities and has been a platform that has facilitated a large amount of donation transactions so far in 2021.

As the crypto industry has expanded significantly in the past few years, it’s use as a way for charitable means has also increased as it was recorded that there was more than $69 million in contributions in the last year alone.

For comparison, this is a 1500% percent increase compared to the previous year which once again shows the variety of difference use cases that crypto can solve in a decentralized manner that doesn’t rely on the management of a centralized third party service.

So far, the average donation size was around $10,000 where most charitable contributions came in towards the end of the year.

DeCrypt reports:

All told, the organization processed more than $69.6 million in cryptocurrency donations, up from $4.2 million in 2020. The average donation size was $10,455, according to the firm’s year-end report, with some 42% of funds donated arriving in November and December.

Pat Duffy, a co-founder of The Giving Block, told Decrypt that he attributes the surge in donation volume to three key factors. One is the influx of money and new people into the crypto space, as well as increased tax literacy regarding cryptocurrency.

Lastly, Duffy points to the rise of the NFT market, which tallied $23 billion in trading volume last year and yielded projects seeking charitable partners for community-driven donations.

More than $12.3 million was donated by known NFT projects through The Giving Block in 2021.

For example, Yuga Labs—creators of the Bored Ape Yacht Club—donated funds to charity Orangutan Outreach. The team donated 66.45 ETH through The Giving Block in August, which was worth about $208,000 at the time of the contribution.

Perhaps the most surprising thing was that the most contributable contributions was actually transacted using Ethereum instead of Bitcoin.

Ethereum donations totaled around $30 million in 2021 while Bitcoin totaled around $25.9 million.

In third place was the popular stable coin USDC which saw around $4.7 million in donations.

This could be attributed to Ethereum being better for transactions and its speed while Bitcoin may be more of a utility to preserve and store wealth.

The platform has stated that it is continuing to experience explosive growth as this new charitable foundation built on the blockchain allows for a way to ensure that the funds are used correctly in a transparent way which has been an issue for many centralized charity organizations.

BusinessInsider reports:

“Many nonprofits have looked to cryptocurrency as the next logical step in fundraising innovation,” the report said.

“For several organizations, crypto philanthropy addresses the more specific challenge of creating sustained, meaningful engagement with younger donors, and taps into a powerful tax incentive to donate.”

Non-fungible token projects also donated $12.3 million in 2021, emerging as a major force in charitable crypto giving. One gift was valued at $3.5 million at the time of the donation, the report said.

It is expected that growth in this space will continue once the crypto market exits the current bear market and continues to expand sometime down the road.

Once again, this is just another industry that is being transformed where a decentralized model makes sense and provides a bullish outlook for the likes of Ethereum and Bitcoin.

 

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