Crypto investors made $37.6 billion in estimated total gains last year, blockchain intelligence firm Chainalysis said Thursday. The gains mark crypto’s recovery from the $127.1 billion in losses in 2022, a year plagued by numerous failures and bankruptcies that were seen in major names such as FTX and Terra-Luna.

Profits made in 2023, however, were much smaller than those achieved during the 2021 bull market, which amounted to around $159.7 billion, according to Chainalysis. 

“One possible explanation for this could be that investors in 2023 were less likely to convert crypto assets into cash, under the expectation that prices would rise even higher given that they didn't surpass previous all-time highs at any point in 2023, unlike in 2021,” Chainalysis said in its report.

Last …