May Sees $1B in Crypto Investments, Slightly Down from Previous Month: KuCoin
The cryptocurrency space attracted over $1 billion in investments during the month of May, representing a slight decrease compared to the previous month’s figures.
Investment Breakdown
According to a report published by KuCoin’s research arm, there were 156 publicly disclosed investments in May, with a total investment capital of $1.02 billion flowing into the crypto space. This marked a 10.61% increase compared to May 2023 but also indicated a 6.4% decline when compared to April 2024.
Popular Investment Choices
Among institutional investors, Ethereum, Ethereum Virtual Machine (EVM) chains, and layer-2 (L2) network projects remained popular choices for investment. However, non-EVM chains such as Bitcoin, Solana, Fantom, and TON also ranked among the top 15 networks favored by investors in May.
Most Active Investors
The report highlighted that Animoca Brands and OKX Ventures were the most active investors during the month. Animoca Brands engaged in 15 deals, while OKX Ventures invested in 11 projects. Other active investors included Cogitent Ventures, SNZ Holding, and DWF Labs, with 10, 8, and 7 deals respectively.
Shift in Investment Trends
KuCoin Research suggested that in response to concerns surrounding low float and high fully diluted valuations (FDV) trends in the crypto market, investors turned their attention towards memes and celebrity tokens. The report stated that some market participants sought alternatives, focusing on relatively obscure low-market-cap assets and new narratives.
Notcoin’s (NOT) Performance
One token that benefited from this shift in investor interest was Notcoin (NOT). KuCoin noted that NOT’s launch with all tokens available from the beginning contributed to its growth in May. On June 3, NOT emerged as the fifth most-traded cryptocurrency, surpassing the trading volume of popular stablecoin USD Coin. The token’s price reached a new all-time high of $0.02896 on June 2, propelling its market capitalization above $2 billion.
Crypto Fundraising Reaches $2.4B in Q1 2024
The crypto market has experienced a significant surge in fundraising, reaching a whopping $2.4 billion in the first quarter of 2024, fueled by a shift in market sentiment and fresh inflows. A total of 518 deals amounting to $2.3 billion were closed in the first quarter of the year within the cryptocurrency industry, marking a remarkable 40.3% increase in investments compared to the previous quarter. Deal volume or the number of transactions also saw a notable rise of 44.7% in the preceding quarter.
Impact of SEC’s Decision on Bitcoin ETFs
The approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) in January of this year has played a significant role in boosting institutional investors’ access to the crypto asset class. After years of failed applications, the SEC’s decision has made it easier for institutional investors to include cryptocurrencies in their portfolios.
