South Korea was ranked eighth globally in terms of cryptocurrency profits last year, according to a report by blockchain data analytics firm Chainalysis on Sunday.

Investors around the world saw a combined $37.6 billion in their crypto gains in 2023. The figure was a 76 percent plunge from a $159.7 billion profit in 2021 but a drastic rebound from a $127.1 billion loss in 2022.

The relatively modest gains last year imply a more cautious approach by investors in liquidating their crypto assets, the report said. Nevertheless, investors saw consistent growth throughout the year, which was only disrupted by setbacks in August and September, when losses amounted to $1.5 billion and $1.4 billion, respectively.

On an international level, the US led with an estimated $9.36 billion in cryptocurrency gains, followed by a varied group of countries including the UK, Vietnam, China, Indonesia, India, Russia, and South Korea, each accumulating over $1 billion in gains. Korea secured the eighth position with a total of $1.04 billion in crypto gains.

Despite the recent bearish market, the inclusion of several upper and lower-middle-income countries in the top ranks, particularly from Asia, highlights a pivotal trend of adaptation within the volatile market. “We previously noted in our 2023 Geography of Cryptocurrency Report that countries in these income categories, and lower and middle-income countries in particular, showed strong cryptocurrency adoption that remained notably resilient even through the recent bear market,” the report said.

Looking ahead to 2024, Chainalysis offered a rosy outlook based on the positive trends observed in 2023. This optimism is further bolstered by the regulatory approval of Bitcoin ETFs and the record-high prices of major cryptocurrencies such as bitcoin and ethereum.

"If these trends persist, we might witness gains akin to those experienced in 2021," the firm said.