KuCoin’s research division released a report indicating that the cryptocurrency sector attracted investments exceeding $1 billion in May, a slight drop from the previous month.
On June 13, KuCoin Research revealed that there were 156 publicized investments in May. Moreover, the research arm of the crypto exchange disclosed that $1.02 billion in investment funds entered the market.
This marks a 10.61% rise compared to May 2023. However, the figure represents a 6.4% decline when compared to April.
Ethereum, EVM blockchains, and L2s maintain dominance
In terms of investments, Ethereum, Ethereum Virtual Machine (EVM) blockchains, and Layer-2 (L2) network projects continued to be popular among institutional investors. Despite this, non-EVM chains like Bitcoin, Solana, Fantom, and TON were also among the top 15 most favored networks by investors in May.
Animoca Brands and OKX Ventures were the most active investors last month. Animoca Brands participated in 15 deals, while OKX Ventures invested in 11 projects. Cogitent Ventures, SNZ Holding, and DWF Labs were also active in May with 10, 8, and 7 deals respectively.
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Rising FDV trend prompts investors to explore alternatives
KuCoin Research suggests that in May, investors turned to meme and celebrity tokens due to concerns about the low float and the high fully diluted valuations (FDV) trend in the crypto market.
KuCoin believes that tokens with high valuations and limited circulating supplies left investors with little room for growth. As a result, they sought out alternatives. KuCoin Research stated:
Researchers highlighted Notcoin (NOT) as one of the tokens that benefited from this shift in May. KuCoin noted that Notcoin’s launch with all tokens available from the start contributed to its growth last month.
Notcoin’s price performance from May 17 to June 3. Source: TradingView
On June 3, NOT emerged as the fifth most traded cryptocurrency, surpassing the trading volume of the popular stablecoin USD Coin (USDC). The token reached a new all-time high of $0.02896 on June 2, propelling its market capitalization above $2 billion.
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