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- The Giving Block’s Biggest 2022 crypto gift was worth $9.4 million.
- USDC was utilized the most for charitable purposes.
The Giving Block, a well-known cryptocurrency charitable site, recently collected the data, indicating that contributions from cryptocurrency will exceed a staggering $10 billion, within the next ten years.
Crypto Philanthropy in 2022
In 2022, despite the sharp decline in the value of popular cryptocurrencies like Bitcoin, Ethereum, and more, crypto charities kept growing, surprising many. A 41% rise in contrast to 2021 demonstrates that the cryptocurrency donations remained unaffected in what was proven as a volatile year for cryptocurrency markets.
In 2022, cryptocurrency contributors jointly donated $172 for every dollar in Bitcoin’s market worth, referring to the metric as “Crypto Philanthropy Adoption Index.” According to the platform’s yearly report, cryptocurrency contributions on the platform hit a new high in 2022, exceeding $125 million.
The Giving Block received a crypto donation worth $9.4 million in 2022, which was the biggest ever. 1,052 new charities entered The Giving Block in 2022. The typical tax-efficient amount of crypto gift remains $6,295.
What are the Growth Indicators?
The average cryptocurrency contribution was almost 31 times bigger than the typical internet giving for non-profits ($204). The charity sector is not avoiding the next generation of contributors, as evidenced by the fact that more organizations joined The Giving Block in 2022 than in 2021.
All the major areas including mental health, children and youth, assistance from natural disasters and armed conflicts, animal rescue recovery, and many others, were funded by cryptocurrency contributors As new groups, NFT producers, and DAOs used their networks to assist organizations, crypto charities dispersed across the web3.
The crypto charitable initiative predicted that it could achieve $1 billion by August 2027, $5 billion in June 2031, and then surpass $10 billion in November 2032.
What was the Major Donation?
Donations worth at least $5,000 at the moment of the contribution made up more than 90% of the total amount of Bitcoin donations. Different donation sizes serve as a helpful reminder that high-net-worth contributors don’t solely fuel digital charity.
USDC accounted for 44% of donations. Ether made up 24% of all donations, while Bitcoin 17%.
Due to the fact the USDC is a stablecoin, it took the lead in the cryptocurrency contributions. Renowned financial organizations have started funding and investing in stablecoins, including BlackRock, Visa, and Mastercard.
Growth Factors Driving the Crypto Donation
The Giving Block is now used by more than 150 charities with yearly sales of $100 million or more to raise cryptocurrency. America’s top organization are adopting cryptocurrencies one after another.
NFT became popular in 2021, and assisted in helping artists sell off their web3 artwork to raise millions of dollars for organizations. NFT charity continued to be a multimillion dollar charitable avenue in 2022.
If it weren’t for the amazing tax relief chance provided to those who do, people wouldn’t be so eager to sell their best-performing assets. The contributor group will potentially expand as more cryptocurrency users become aware of the tax benefits on an annual basis.
Donors now have more options, thanks to growing cryptocurrency purchases in the non-profit industry. This new charity environment has contributed to the ongoing success of non-profits of all forms, sizes, and purposes.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
