On March 30, The Giving Block, an intermediary organization that helps nonprofits accept gifts of crypto assets, released its annual report on crypto philanthropy, which shares data and trends in digital asset gifts to charities.
The report indicates a decrease in donations made through the platform, totaling about $50 million compared to the $70 million processed in 2021. This trend is consistent with reports from other organizations that facilitate crypto donations and wasn’t unexpected, given the poor performance of digital asset markets in 2022.
Despite this malaise, The Giving Block notes that more nonprofits are using their platforms to accept crypto donations than in any other year, and the average size of gifts remains high. This momentum suggests that crypto-giving trends may recover if digital asset markets improve.
Digital asset donations will likely continue to fluctuate if market volatility and crypto’s user base ebbs and flows as we’ve seen over the past few years. However, if policymakers craft thoughtful consumer protections that increase trust in crypto markets–which is proving to be a bigger lift than many had hoped–more investors may trade in digital assets, possibly increasing their market value. And nonprofits already engaging with crypto donors will be the first in the charitable sector to benefit if crypto’s user base grows sharply.