KuCoin’s research division recently released a report indicating that the cryptocurrency market received over $1 billion in investments in May, showing a slight decrease compared to the previous month.
According to KuCoin Research on June 13, a total of 156 investments were made public in May, with an influx of $1.02 billion in investment funds into the market. This marks a 10.61% increase from May 2023, although it represents a 6.4% decline from April.
In terms of investments, Ethereum, Ethereum Virtual Machine (EVM) blockchains, and layer-2 (L2) network projects continued to attract institutional investors’ interest. However, non-EVM chains such as Bitcoin, Solana, Fantom, and TON also ranked among the top 15 most favored networks by investors in May.
Animoca Brands and OKX Ventures emerged as the most active investors last month, with Animoca Brands participating in 15 deals and OKX Ventures investing in 11 projects. Cogitent Ventures, SNZ Holding, and DWF Labs were also actively involved in May, with 10, 8, and 7 deals, respectively.
KuCoin Research noted a trend where investors turned to meme and celebrity tokens in response to concerns about the high fully diluted valuations (FDV) in the crypto market. They highlighted that tokens with high valuations and low circulating supplies left investors with limited opportunities, prompting them to explore other options.
The researchers specifically mentioned the success of Notcoin (NOT) in May, attributing its growth to the fact that all tokens were available from the start. On June 3, NOT became the fifth most-traded cryptocurrency, surpassing the trading volume of popular stablecoin USD Coin (USDC). Notcoin’s price reached an all-time high of $0.02896 on June 2, pushing its market capitalization over $2 billion.
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