As a researcher with a background in cryptocurrency and blockchain technology, I find the recent report released by KuCoin Research on May’s crypto investment trends particularly intriguing. The $1 billion in new investments highlighted in the report represents a slight decrease from April but a significant increase compared to the same period last year.

In May, the research division of the KuCoin cryptocurrency exchange published a report, indicating that approximately $1 billion was invested in the digital currency market – representing a modest reduction compared to the previous month.

During this time frame, Ethereum and EVM-centric platforms were the preferred choices for institutional investors when it came to investing.

$1 Billion in Investment

This week, a report from KuCoin Research revealed that over 156 cryptocurrency projects disclosed receiving investments totaling approximately $1.02 billion during the month of May.

The report revealed that May’s investment total was around $70 million less than the previous month, equating to a 6.4% decrease from April’s $1.09 billion. On a larger scale, however, May’s investments represented a 10.61% rise compared to the $905 million reported in May 2023. The report underscores that this new investment signifies “continued financial commitment and growth prospects within the industry.”

Approximately half of the projects secured financing within the range of $1 million to $10 million. Institutional investors showed a strong preference for Ethereum, EVM chains, and L2 networks like Arbitrum and Polygon. Among non-EVM chains, Solana received the most institutional investment in May, with Bitcoin, Fantom, and TON also attracting significant interest from this investor segment.

As a researcher studying investments in emerging technologies and public chain networks by major Chinese institutions, I’ve observed that these entities have remained consistently active in this space. For instance, Animoca Brands has been involved in approximately fifteen deals, while OKX has invested in eleven projects. Furthermore, other notable investors such as Cogitent Ventures, SNZ Holdings, DWF Labs, Polygon Ventures, MH Ventures, Haun Ventures, Waterdrip Capital, and GBV Capital have also made it into the top ten.

Among the preferred themes for institutional investors were modularity at Layer 2 (L2), as well as Liquid Staking Derivatives (LSD) solutions in the second tier of blockchain technology.

The report uncovered that: Institutions exhibit a significant readiness to advance projects into the public market via listings. This revelation emerged as data showed a decline in the number of Series A financing initiatives, dropping from 10% to 7.77%, and an increase in strategic financing projects, rising from 15.73% to 18.45%.

Major Dynamic Shift in Investor Focus

The report indicates that investors have recently changed their investing priorities, moving from traditional assets towards meme tokens, celebrity-backed digital currencies, up-and-coming trends, and low-priced assets. With some new tokens boasting sky-high valuations and limited availability, investors have been drawn to explore less mainstream investment opportunities. Notcoin has become a significant recipient of this investor interest shift.

The report brought to light how recent regulatory adjustments in the US have substantially altered the rules and operations within the cryptocurrency sector. Consequently, these developments have presented fresh hurdles and factors for investors and market players to address, affecting their approaches and financial commitments accordingly.

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2024-06-16 08:32