- In 2022, crypto donors collectively gave $172 per every dollar in Bitcoin's market value—a 41% increase compared to the figure calculated for 2021.
- Over two-thirds of these top crypto-enabled nonprofits are actively fundraising for crypto.
- 56% of leading US charities accept cryptocurrency donations.
Crypto philanthropy dominates charitable giving, providing borderless and bureaucracy-free alternatives to traditional philanthropy. Stablecoins, in particular, are the growing leaders in these crypto donations, grabbing the attention of crypto investors and philanthropists wanting to avoid associated volatility risks.
In the latest analysis by Banklesstimes.com, USDC was the most donated crypto at 34%, trampling Ethereum and Bitcoin, underscoring the stability in stablecoins’ value and their augmenting influence.
The site’s financial analyst, Elizabeth Kerr, comments:
BanklessTimes Crypto analyst, Edith ReadsUSDC’s transparency and efficiency of transactions have made it an attractive option for charitable giving. Built on blockchain technology, USDC transactions offer enhanced transparency, allowing donors to track their contributions in real-time.
Crypto Donations’ Rising Popularity
The appeal of crypto giving is largely fueled by crypto’s heightened adoption and acceptance rates, especially in technology and financial institutions. Cryptocurrency and Web 3 projects are now sought after by over half of Fortune 100 companies, driving crypto awareness and donations.
Nonprofits, especially, are showing show keen interest in crypto giving, with over 1,000 nonprofits joining the popular donation platform Giving Block in 2022. Additionally, more than $125 million was contributed to the platform the same year before considerably rising to $2 billion in 2023, highlighting that crypto charity giving is reaching a new fever pitch. Besides, analysts predict crypto donations will outperform by November 2032, with about $10 billion in expected inflows.
Bitcoin has long held a staggering lead over other cryptocurrencies in donations. However, in 2021, Ethereum dethroned it before USDC took the lead in both 2022 and 2023, hinting at a new reliance on stablecoins compared to Bitcoin and Ethereum.
Experts predict an overall improvement in Ethereum donations, given that several Ethereum ETFs are set to be approved in the coming years, bolstering its growth and outreach.
Why Will Crypto Philanthropy be the Future of Philanthropy?
Crypto philanthropy opens up a broader network for global participants to contribute seamlessly to charities, overcoming the hurdles of geographical constraints. Moreover, crypto philanthropy often involves significant tax advantages, such as capital gains, tax exemptions for cryptocurrency donations, and deductions from the donor’s overall gross income.
Crypto donations will be key in defining philanthropy and charities, especially with the increasing acceptance of crypto and its supposed benefits over cash donations.
