In 2024, the value of cryptocurrency donations surpassed a staggering $1 billion, propelled by the thriving digital asset market and enhanced global regulatory understanding. These insights are according to a study by The Giving Block, a tool that facilitates non-profit organizations in garnering donations from crypto enthusiasts.
“Increased regulatory transparency leads to more institutional investment and robust crypto platforms built to endure,” The Giving Block conveyed to Cointelegraph. “This all contributes to the expansion of the crypto sector which is a fundamental force behind crypto philanthropy.”
The Giving Block has identified several growing trends in the crypto philanthropic sphere, including the surge in non-profits accepting crypto donations (over 70% of leading US charities) and the geographical diversification of crypto donations across the US.
Four states and the District of Columbia accounted for roughly 69% of the total donation volume in the US: New York (22%), Florida (15%), California (13%), Pennsylvania (11%), and the District of Columbia (10%). The states witnessing the most crypto donations have shifted over recent years, indicating a growing geographical diversification.
The range of causes receiving donations was also remarkably diverse. Education (16%) and health/medicine (14%) were the leading causes, each accounting for over 10% of crypto donations. Six other categories accounted for between 5% and 10% of donations, while seven categories received between 1% and 5%.
The intersection of artificial intelligence and crypto philanthropy is a noteworthy emerging trend, with the advanced technology potentially revolutionizing and autonomously managing philanthropic endeavors. This development could enhance the practical applications of blockchain for impact-driven operations.
While stablecoins represented 44% of crypto donations in 2023, 2024 saw an increase in donations of appreciating assets, particularly Bitcoin (BTC), Ether (ETH), XRP (XRP), and Solana (SOL). These four cryptocurrencies represented 90% of all crypto donations in 2024. The study notes that during market downturns, stablecoins are often donated due to their price stability.
The report by The Giving Block reveals that the typical crypto donor is generally in their 20s or 30s, tends to be wealthier and more philanthropic than the average donor. They are often either “crypto evangelists” who donate to “pay it forward” or “optimistic investors” interested in the financial benefits of donating crypto to causes they are passionate about.
Donating cryptocurrency is “significantly more tax efficient than donating cash and is easier than donating stocks,” according to The Giving Block. Donors can enhance their impact by leveraging tax benefits, selecting the right assets to donate, and timing their contributions appropriately.
Expectations for 2025 project a whopping $2.5 billion in crypto donations, driven by increased crypto wealth generation, supportive political environment, and heightened crypto asset adoption. Memecoins are anticipated to play a more significant role in crypto philanthropy in 2025. By 2035, crypto donations could potentially hit an estimated $89 billion.
