Crypto philanthropy expected to surpass $10b in 10 years
The Giving Block, a leading crypto charity platform, predicts that crypto donations will skyrocket to over $10 billion in the next decade.
Since the COVID-19 pandemic and the Russian invasion of Ukraine, the trend for crypto donations has surged. Despite market volatility affecting fundraising conditions the previous year, 2022 was The Giving Block’s second-best fundraising year.
Crypto donations volume on the rise
According to the annual report titled “Crypto Philanthropy Data, Trends & Predictions,” crypto donations on the platform reached a record-breaking high of over $125 million in 2022. The report predicts that crypto donations could hit $1 billion by August 2027, $5 billion in June 2031, and surpass the $10 billion milestone in November 2032.
USDC, Ether, and Bitcoin are the most popular cryptocurrencies used for donations, with USDC accounting for 44% of the volume. Vitalik Buterin, the co-founder of Ethereum, is the biggest donor, contributing $9.4 million through his philanthropic fund, Balvi. The Giving Block also processed an undisclosed value crypto donation given to the University of Maryland for air disinfection research to prevent future pandemics.
Tax incentives drive crypto donors online
The report highlights that tax incentives offered to donors in the US and other countries have made crypto philanthropy a reliable vehicle for charitable giving. The stability of crypto philanthropy versus other use cases in crypto is also attributed to the abundance of opportunities for users to consider tax benefits when making charitable gifts with their digital assets.
The Giving Block emphasized the enthusiasm for crypto philanthropy’s role in the mainstream adoption of the asset class. The report forecasts that crypto philanthropy will gain traction in the nonprofit sector and among crypto investors as a vehicle for tax savings and social change.
As crypto donations become more popular, it’s paramount to champion transparency and accountability among charitable organizations to guarantee funds flow toward their true aims.
