Crypto Philanthropy Data, Trends & Predictions

Ethereum is the second largest cryptocurrency by market cap and has rebounded significantly in late 2023 and early 2024, recovering from a price correction in 2022. At present, it has gradually moved closer to its 2021 all-time high of about $4,800.

Ethereum’s outlook for 2024 is shaped by a combination of technological advancements, regulatory developments, and market dynamics, signaling a potentially bullish trend.

The network’s ongoing transition to a proof-of-stake consensus mechanism, coupled with the anticipated Dencun upgrade and the expansion of Layer 2 solutions, are key technological drivers poised to enhance Ethereum’s transaction capacity and reduce costs, thereby attracting more users and developers​​.

The market is also buzzing with the prospect of spot Ethereum ETFs, which, alongside Ethereum’s deflationary supply dynamics and its correlation with bitcoin, are bolstering institutional interest​​​​. Analysts predict Ethereum’s price could see a substantial increase, with projections ranging widely based on factors such as the Proto-Danksharding upgrade’s potential to lower gas fees and increase network activity​​.

Ethereum Philanthropy Update

For a decade between 2010 and 2020, bitcoin was widely regarded as the most donated cryptocurrency, dominating crypto philanthropy during the 2017 bull market. In 2021, Ethereum became the year’s most donated cryptocurrency on The Giving Block for the first time. In 2022, Ethereum donors gave more than bitcoin donors yet again, coming in second only to USDC donors. 

Though Ethereum donations fell back to the number three spot in 2023, behind USDC and Bitcoin, Ethereum remains a highly popular giving method. With growing excitement about Ethereum’s future, including the possibility of spot ETH ETFs on the horizon, it’s very possible that Ethereum could be the most donated cryptocurrency in the year ahead.

Layer 2s (L2s)

In cryptocurrency, a Layer 2 (L2) is a channel that sits on top of the core cryptocurrency’s Layer 1. Just like side roads allow you to drive around the traffic on a main highway, a layer two allows you to conduct network activities away from the main chain more efficiently, avoiding congestion. Cryptocurrencies like Ethereum are designed to allow developers to build Layer 2 use cases with ease, which has led to the creation of tons of new tokens (ERC-20 tokens) built on Ethereum, with their own use cases and investor communities.

NFTs, or Non-Fungible Tokens, have played a really powerful role in broadening the scope of crypto philanthropy, both in terms of nonprofit participation and donor participation.

The visual nature of NFTs, as well as the auction-style process of minting and selling the work, has broadened the appeal of Web3 to new demographics.

Auctions have long played a role in nonprofit fundraising, as organizations have auctioned off art, experiences and other things to raise money for their cause. The auction-style release of NFTs has opened up nonprofits to partner with NFT artists and studios to turn releases into fundraisers, like we’ve seen with:

Stella Artois, ArtBlocks and Vayner3 

On World Water Day 2022, Stella Artois, ArtBlocks and Vayner3 (formerly “VaynerNFT”) launched a charity NFT auction to support Water.org. The generative art collection’s creator, Eliya Stein, used the charity’s mission as inspiration for the water-themed NFTs. In total, the sold-out collection raised more than $200,000.

NodeMonkes 

In 2023, NodeMonkes NFT, a successful Bitcoin Ordinals collection, chose to support the Pediatric Cancer Research Foundation. The project raised 2.1 BTC (over $120,000 in value) to help fund breakthrough medical research for pediatric cancer.

reGEN and ArtBlocks

reGEN, a generative art exhibition curated by Foteini Valeonti and Alex Estorick, worked with ArtBlocks to host a charity auction to support Alzheimer’s research and treatment. The project has raised more than $500,000 to date, funding both Cure Parkinson’s and The ALS Association.

Bored Ape Yacht Club

Yuga Labs’ Bored Ape Yacht Club is a blue-chip NFT project with a cultural reach beyond Web3. In 2021, the project made a 169 ETH charitable donation (valued around $389,000) to Orangutan Outreach, a nonprofit organization helping rescue and rehabilitate apes in Sumatra and Borneo.

In the pecking order of cryptocurrencies, Bitcoin and Ethereum are generally considered the biggest two, as measured by usage, familiarity, and market cap. But thousands of other cryptocurrencies exist. Some have their own blockchains, as is the case with Solana’s SOL and Ripple’s XRP.

Solana

Solana, currently the fifth-largest crypto asset by market cap, has had an exciting 24 months. After a volatile year due to the ripple effect of FTX and its ensuing bankruptcy, Solana is now roaring back with increased intensity and commitment from its community. Builders and fans doubled down on their commitment to improving the blockchain and launching new projects, while maintaining an enthusiasm for giving back, putting past challenges aside and looking ahead to perhaps the most exciting future in the entire crypto space.

Solana’s SOL token, which previously reached an all time high market cap of $78B (at a price of $260), was embroiled in multiple bankruptcy cases most notably FTX and Celsius. As those estates sold assets to cover their liabilities, billions of dollars of SOL changed hands and saw the price drop as low as $8 in January of 2023. In many cases this would have spelled the end for a project that simply had the wrong backers, but the tech and more importantly the community of diamond handed holders and users of the blockchain persevered.

Presently, the SOL price has recovered to around $115, but merely discussing price would be a disservice to the developments within the ecosystem. Solana has upgraded its technology, launched fun meme coins like Bonk and Wif, and even launched the Saga phone, a crypto friendly phone with a data plan as low as $20 per month leveraging decentralized infrastructure via the Helium project.

The Solana community hasn’t forgotten to give back, either. Over the past few years, the Solana community donated more than $500,000 worth of SOL via The Giving Block. In 2023, the Bonk community went above and beyond by piloting a donation app called The Giving Bonk which will support animal related causes and nonprofits. Solana NFTs have also been a force for good, with a notable project Quekz whose art resembles digital ducks making numerous crypto donations, totalling hundreds of thousands of dollars in impact, to various nonprofits during the holiday season.

The Solana community also launched a peer-to-peer fundraiser after many profited from the SAGA token airdrop. Millions of holders and supporters are building a community centered around great tech, but with a fun and charitable undertone as well. 2024 looks to be an exciting year for both the Solana ecosystem and the nonprofits that engage with the community.

XRP

XRP, the token created by Ripple, is the sixth largest cryptocurrency by market cap, with over $31B invested in XRP. The so-called “XRP Army” has not only continued to thrive, it has also been one of the most impactful crypto philanthropy communities historically.

• Ripple’s founders, including Chris Larsen, have made cryptocurrency (and traditional) donations valued in the multi-millions.
• The Ripple Impact team has done amazing work in the areas of creating financial inclusion, moving us toward environmental sustainability, and fostering academic research and development around blockchain and cryptocurrencies.
• In 2023, Ripple Impact stepped up and joined Jared Isaacman in providing match dollars for crypto donors who gave in support of those impacted by the Maui Wildfires.

For a period of time, XRP was in flux as the SEC attempted to classify it as a security, leading to many exchanges choosing to no longer offer XRP while they figured things out. In July of 2023, Ripple had a landmark win when a judge ruled that the cryptocurrency was not in and of itself a security, opening the door for exchanges to list the token again, and restoring their position as a top cryptocurrency.

Though legal disputes between Ripple Labs and the SEC continue, things are looking up for XRP if they are able to close out of this battle with a win.

In 2024, the stablecoin market is witnessing substantial evolution and expansion, fueled by a surge in demand for stable, secure, and swift financial transactions across decentralized finance (DeFi), trading, and liquidity management. This demand is reflected in a market cap that has exceeded $100 Billion. As the market matures, there’s a noticeable pivot towards low-volatility assets and stablecoins pegged to baskets of currencies or goods, aiming to provide stability and act as an inflation hedge​​.

Regulatory advancements, such as Europe’s Markets in Crypto-Assets Regulation (MiCA), are shaping the landscape, encouraging greater institutional participation and enhancing market accessibility. Concurrently, the enduring dominance of dollar-based stablecoins coexists with a rising interest in stablecoins tied to local fiat currencies, indicating a deeper integration with traditional financial systems and a response to localized financial needs​​​​.

Mainstream financial entities like Visa and PayPal are increasingly embracing stablecoins, suggesting a trend towards wider adoption. Circle’s preparation for an IPO and its development of stablecoin use cases for Web3 highlight the sector’s innovative trajectory and its potential pivotal role in financial ecosystems​​.

The market’s emphasis on overcollateralization, transparency, and diversification underscores a commitment to ensuring stablecoin sustainability and resilience. Regulatory and governmental actions, particularly in the US and EU, are poised to further define the sector’s regulatory framework, aiming to stabilize and regulate stablecoin growth​​​​.

In essence, the stablecoin sector in 2024 is marked by robust growth, regulatory evolution, and an increasing alignment with mainstream financial services, positioning stablecoins as a key component of future financial infrastructures​​​​​​.

Circle and USDC 

For the second year in a row, the stablecoin USDC was the most donated cryptocurrency in 2023. 

Circle is said to be considering an IPO. If these plans are realized, seeing another regulated company go public in the US would be an encouraging sign for the crypto community. It would also make Circle the second public company to be in the stablecoin space, outside of PayPal, which launched its PYUSD stablecoin in 2023.

USDC exemplifies the growing adoption of stablecoins for business and financial use cases. In 2023, Visa launched a USDC settlement pilot for payments companies to use USDC as a settlement currency for their merchants. Visa is also testing USDC on the Solana blockchain for settling payments to companies that increasingly see the benefit of using digital dollars for their business needs.

Memecoins have long played an interesting role in the crypto sector. There tends to be a tongue in cheek component to memecoin communities like DOGE and Shiba Inu. But memecoins have presented nonprofits with fundraising opportunities due to the viral nature of the communities and hype, and the real wealth that they can sometimes generate for investors.

In 2021 and 2022, we first received inquiries about donating new charity tokens and memecoins. Many of these projects and communities wanted to make automated donations via smart contracts. These innovative efforts drove millions of dollars of charitable impact. 

In addition to significant donations from memecoin communities such as Shiba Inu and Dogecoin, there has been a notable increase in innovative technological development within the memecoin sector. These communities, along with the organizations representing them, have transcended the engaging allure of their branding to pioneer novel and compelling methods for embedding philanthropy within the cryptocurrency domain.

During the giving season, Bonk, a memecoin partner of The Giving Block, sponsored a hackathon in Taiwan. This event brought together developers to create groundbreaking charitable decentralized applications (DApps) leveraging The Giving Block’s API, showcasing the potential for technological synergy between charitable giving and blockchain technology.

“BONK is the social layer and utility token focusing on community and ecosystem empowerment – one that embraces the humor and culture of web3, while also serving as a helpful, versatile, and user-friendly financial tool.”

Elsewhere in the world of memecoins, Baby Doge stands out as a trailblazing donor through The Giving Block. As of this report’s publication, Baby Doge is diligently working on integrating The Giving Block’s API. This integration aims to enhance their user base’s capacity to make donations to thousands of non-profit organizations, highlighting Baby Doge’s commitment to leveraging cryptocurrency for social good.

“The Baby Doge Community has embraced the potential of cryptocurrency donations, opening up an avenue of support for animal rescue groups around the world. #BabyDogeArmy has contributed close to $500,000USD via The Giving Block, to various shelters and animal welfare programs, greatly improving their ability to help animals.

The Giving Block has also recently partnered with Baby Doge for the ‘Token of Appreciation 2024 Campaign,’ a web3 donation initiative that opens up innovative avenues for funding and highlights the community’s commitment to animal care and rescue efforts. This joint effort marks a significant step in using crypto to support charity, particularly for animal care, paving the way for the future of digital donation.”

Overall, memecoin philanthropy should be a reminder that innovation and goodwill can be found in every corner of the crypto landscape. 

Could another memecoin make an impact valued at hundreds of thousands of dollars in 2024? We see no reason why it couldn’t happen again. Each bull market has brought some innovation in the past, and it’s highly likely that the next one will be no different. 

Charities should remember to treat all outreach from the crypto space, no matter how wacky it might seem the first time around, as legitimate potential donors. Spend time engaging and cultivating them and learning about what they have in mind. (Of course, reach out to the team of experts here at The Giving Block for insights and best practices.)

Forward-thinking fundraisers have recognized the numerous factors that incentivize crypto investors to become crypto donors, and were not dissuaded by the recent market correction.

As more nonprofits continue to not only accept crypto, but actively promote the giving option to their audiences, they can expect to drive more giving from younger donors, major gift donors, and donors who fall into both of these categories. This is also why it’s so important for nonprofits to present their crypto giving option alongside their Donor-Advised Fund and stock giving options, as crypto investors are likely to be utilizing these types of accounts as well.

Strategic Recommendations

What Can Drive Crypto Fundraising
Success in 2024?

During 2023, we saw successful nonprofit fundraisers continue to build and strengthen their cryptocurrency fundraising programs. They largely focused on improving all aspects of their user experience, or as we say in the crypto space, “bear markets are for building.” Crypto philanthropy remained steady and nonprofits that integrated crypto (and other donation methods such as stock and Donor-Advised Fund granting) into their giving experiences performed well. 

With a confluence of positive crypto market sentiments lately, nonprofits may be eager to embrace cryptocurrency donations in 2024. But as with any donor stewardship efforts, getting cryptocurrency investors to donate their crypto assets requires that organizations take crypto seriously, communicate effectively about their missions and the benefits of crypto giving, and invest in creating a positive user experience. 

Here are some of the biggest difference makers for crypto fundraising outcomes among charitable organizations:

1. External factors

Positive market conditions create giving opportunities

Starting with perhaps the most obvious factor: investors like to donate appreciated assets because doing so allows them to optimize their philanthropy for both societal impact and tax efficiency. 

As the crypto market grows, many investors will want to take profits before the cycle’s correction period begins. At this point, it will be common for crypto investors to make donations of crypto assets. 

On the flip side of this same coin, nonprofits should understand that the market’s correction period may be less fruitful for receiving these donations, but remains an opportunity to engage in preliminary stewardship conversations with potential donors.

Each part of the entire cycle (including the periods of correction and growth) is critical to facilitating Crypto Philanthropy’s potential impact. After all, the crypto market’s volatility is an important driver of exponential returns on crypto investments, which can be used to support charitable causes.

One outcome to avoid is to wait until the bull market is back, only to find that many crypto investors have committed to supporting another organization or have parked their assets in a Donor-Advised Fund.

Increasing crypto tax literacy will result in more crypto donations

The world’s most impactful philanthropists use financial advisors who are experts in niche areas of the tax code. Historically, crypto tax treatment once fell into this category, but with a user base that’s larger than the population of the United States, this is no longer the case.

Today, the average taxpayer may not yet work with a crypto-savvy tax advisor. That will change as waves of crypto adoption sweep the globe. As this crypto user base grows, more people will owe taxes on their digital asset holdings.

Over time, these individuals will discover how to reduce their tax liability through donating appreciated crypto to charity. As more taxpayers face the decision of paying more taxes or donating crypto, many will seek out crypto-friendly organizations to support.

2. Technical considerations

Discoverability helps all organizations of all sizes fundraise crypto

As we have seen time and again, crypto donations are not given exclusively to large nonprofits that can invest in building a crypto fundraising program. Search-engine optimized crypto giving webpages can help small, mid-sized and local charities increase their exposure to would-be crypto donors.

This advice isn’t just a general best practice; we work with our clients throughout the year to optimize their crypto (and stock and Donor-Advised Fund) giving experiences. We found that nonprofits that had discoverable and user-friendly giving pages on average raised over 40x more than nonprofits that did not.

As we saw in 2023, cryptocurrency donations came throughout the year. Crypto donations were highest in December, consistent with wider fundraising trends. We saw 28% of crypto volume in the final quarter of the year and 18% of crypto donations in December. 

This was statistically different to prior years where the vast majority of crypto giving happens in the final week of December. Crypto skyrocketed in value in the final part of the year, and bitcoin users were holding on to their crypto in anticipation of the ETF announcement. 

But January, July and August were also impactful months for crypto donors. Around 70% of crypto donations were made outside of Q4. We expect that in future years, without the excitement of the bitcoin ETF announcement, the giving will be closer to 50% in December and 50% the rest of year.

Overall, the varied timing of crypto donations highlights the importance of stewarding all donors (be it crypto or other asset classes) throughout the year. There is less competition for messaging throughout the year, and organizations that consistently campaign with consistent impact messaging and calls to action throughout the year are those that are most likely to get donations outside of giving season.

Shift donor stewardship approach for different market conditions

A major driver of year-end fundraising success in the nonprofit sector is donor stewardship. The same is true for crypto. If your donors know an opportunity is coming, and are excited about it, they have time to talk to advisors and make major gifts (in crypto, stock, or another giving method) a part of their plan. 

Waiting until year-end, or until cryptocurrency is in the news approaching all-time highs, is a recipe for getting beat to the punch. To avoid donors making these major tax optimized gifts via crypto and stocks to DAFs or peer nonprofits, ensure your audience is consistently made aware of their options to give crypto and stock.

Align your crypto acceptance with similar giving methods 

Donors who hold crypto tend to own stocks as well, particularly for investors under 50 years old. With crypto trading now available on the stock market through the recently minted ETFs, that overlap will likely grow.

When presenting your crypto giving option, let donors know you accept stock donations too. As long as these giving methods are digital and automated, donors can easily choose between stock or crypto giving based on preference—without the arduous process of contacting your team before they can make a contribution.

Similarly, many investors have set up Donor-Advised Fund accounts in recent years. Today, there is over $230 Billion sitting in Donor-Advised Fund accounts that has not yet been granted to charities. 

Through conversations with donors that give through our white-glove Private Donor Services, we’ve learned that many donors have been parking their crypto and stock donations in Donor-Advised Fund accounts simply because they didn’t see an easy way to donate their investments directly to the charity they’d like to support. 

With your crypto and stock options easily accessible, many donors will prefer to give these assets directly to charitable organizations, rather than taking the extra step of depositing them into a Donor-Advised Fund.

When it comes to cryptocurrency donations, your donor experience and how well you integrate various methods of giving into your website matters most, not your cause area or the size of your organization. 

• Nonprofits that optimize according to best practices in our End-of-Year Toolkit are more likely to see higher conversion rates, increased average gift size and higher donor retention across multiple giving methods. 
• Nonprofits that make it harder to donate, unsurprisingly, see less success than those that make it easy to donate, regardless of the method of giving. 

On average, nonprofits on our Accelerate, Custom and Develop packages also raised 6x more than clients on our most basic package. These organizations tend to devote more resources to crypto fundraising and apply learnings from our Client Success team.