Etherium is used for crypto donations more often than Bitcoin. What does this mean?
The Giving Block platform allows users to donate cryptocurrency to multiple charities. The day before, its representatives announced that it had donated the equivalent of more than $69 million in coins to good causes in 2021, an increase of 1,500 per cent over the previous year. In total, the organisation has processed more than $69.6 million in crypto donations and only $4.2 million in 2020. In addition, the platform’s analysts found one interesting feature – it turns out that the status of the most popular coin for donations has been acquired by Etherium, which has also surpassed Bitcoin. Here’s a closer look at the situation.
It’s not the first time the topic of cryptocurrency donations in 2022 has been raised. In particular, in January, Mozilla representatives refused to accept coins as donations due to concerns about the impact of crypto on the environment. As a result, they received a portion of criticism for their decision from the creator of Dogecoin.
A similar proposal was voiced by representatives of the Wikimedia Foundation, which funds the famous Wikipedia resource. And while members of the team argued in favour of stopping the interaction with the coin, it did end up going ahead. As the staff pointed out, they want to be inclusive, that is, accessible to all. And crypto donations are just a manifestation of inclusivity.
Bitcoin and altcoins
As it turns out, coins have been used quite heavily for such purposes in the past year. Here are details of the situation from representatives of such an organisation.
Which cryptocurrencies are being donated most often
Pat Duffy, co-founder of The Giving Block, said in an interview with Decrypt journalists that three key factors account for the rise in donations. One is the influx of money and new people into the cryptosphere, as well as increased fiscal literacy around cryptocurrencies. In other words, people are increasingly using digital assets, so investors have the opportunity to donate as well.
The Giving Block
In addition, the growth of the NFT sector, which had a trading volume of $23 billion last year, should also be taken into account.
Against this backdrop, prominent NFT projects donated more than $12.3 million through The Giving Block in 2021. For example, development studio Yuga Labs – creators of the NFT collection Bored Ape Yacht Club – donated to charity Orangutan Outreach. In August, the team also donated 66.45 ETH through The Giving Block, which was worth around $208,000 at the time of the donation.
Additionally, in 2021, Etherium surpassed Bitcoin in terms of donations for the first time. According to the platform, its users gave $30.8 million in ETH and only $25.9 million in BTC. The third most popular coin was USDC, with a donation volume of $4.7 million.
Etherium price over the last 90 days
We believe that Efirium's greater popularity as a donation tool compared to Bitcoin is due to the coin's higher growth last year. In other words, investors have been making more money from ETH and therefore have been sharing these coins with similar organisations.
We clarified the latest data: even now, taking into account the market failure over the last year, the price of Etherium rose by 74.84 percent. At the same time, Bitcoin's corresponding figure is 3.96 percent.
Etherium and Bitcoin exchange rate changes over the year
In addition, the cryptocurrency has been actively donated by NFT platforms. And since Etherium remains the main blockchain for unique tokens, it was ETH that the management of such platforms sent for donations.
The Giving Block grew significantly in 2021, as it expanded from supporting around 120 charities to more than 1,200 by the end of the year. Large investors and 77 non-profits regularly interact with the platform. Meanwhile, the total turnover of money in charities through The Giving Block has surpassed the $100 million level in crypto.
We believe that the rise in popularity of cryptocurrencies as donations is closely tied to the direction of this market. The more investors earn from coins, the more actively they are willing to share the funds they receive. Therefore, if the niche continues to subside in 2022, the volume of donated crypto will clearly decline. However, this theory has yet to be tested in practice.
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