KuCoin Exchange's Research Arm Reveals Crypto Investment Report For May

KuCoin Research, the research division of the KuCoin exchange, unveiled a report on cryptocurrency investments in May. The report shows investors poured around $1 billion into new crypto projects last month, a slight dip from April’s $1.09 billion investment figure.

According to the report, institutional investors favored Ethereum and EVM-focused platforms in May. Ethereum, EVM chains, and Layer 2 networks like Arbitrum and Polygon attracted the most institutional interest and investment.

Solana led institutional investment among non-EVM chains, followed by Bitcoin, Fantom, and TON. These four networks were among the top 15 networks attracting investor interest last month.

The report states that the crypto industry saw a public disclosure of about 156 investments totaling around $1.02 billion in May. While this figure is $70 million lower than April’s, it represents a 10.61% increase from May 2023’s $905 million in disclosed investments.

KuCoin Report: Major Chinese Investments & Shifting Investor Focus

Over 50% of the projects received financing between $1 million and $10 million. Major Chinese institutions like Animoca, OKX, Cogitent Ventures, SNZ Holdings, and DWF Labs were highly active, investing in emerging technologies and public chain networks.

The report also highlights a dynamic shift in investor focus. Investors are now exploring memes, celebrity tokens, emerging narratives, and low market cap assets. This shift came as tokens launched with extreme valuations and limited supplies, leading investors to seek alternative investment options. Notcoin emerged as a significant beneficiary of this change in investor preference.

The report emphasizes that recent regulatory developments in the United States have significantly impacted the legal and operational landscape of the crypto market. These changes have introduced new challenges and considerations for investors and market participants, influencing their strategies and investment decisions.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.