In May, the cryptocurrency market saw a total of $1.02 billion in new investments, according to a report by KuCoin Research. Although this amount was slightly lower than the previous month, it still represented a 6.4% decrease from April’s total investment of $1.09 billion. However, when compared to May 2023, there was a 10.61% increase from $905 million in investments.
The report revealed that institutional investors showed a strong preference for Ethereum and EVM-focused platforms during this period. Over 50% of the projects received funding ranging from $1 million to $10 million, with Ethereum, EVM chains, and L2 networks like Arbitrum and Polygon being the most favored by institutional investors. Solana was the leading non-EVM chain in terms of institutional investment, followed by Bitcoin, Fantom, and TON.
Chinese institutions played a significant role in the cryptocurrency market, with major players like Animoca and OKX participating in multiple deals. Other institutions such as Cogitent Ventures, SNZ Holdings, and Polygon Ventures were also active in investing in emerging technologies and public chain networks.
The report also highlighted the growing interest in modularity, Layer 2 solutions, and Liquid Staking Derivatives (LSD) among institutional investors. There was a noticeable shift in investor focus towards memes, celebrity tokens, emerging narratives, and low market cap assets. This shift led investors to explore alternative investment options, with Notcoin being a major beneficiary.
Furthermore, recent regulatory developments in the United States have had a significant impact on the legal and operational landscape of the crypto market. These changes have presented new challenges and considerations for investors and market participants, influencing their strategies and investment decisions.
Overall, the cryptocurrency market continues to attract significant investment interest, with institutional investors showing a strong preference for Ethereum and EVM-focused platforms. As the market evolves and regulatory changes take place, investors will need to adapt their strategies to navigate the evolving landscape of the crypto industry.