Crypto Investments Surpass $1 Billion in May, with Ethereum Leading the Way
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Investments in Ethereum, EVM chains, and layer-2 (L2) network projects have continued to be popular among institutional investors recently.
KuCoin exchange’s research division released a report on cryptocurrency performance in May, noting a slight decrease in new investments to $1 billion compared to April. The report highlighted that institutional investors predominantly favored Ethereum and EVM-focused platforms during this period.
$1 Billion in Funding
Earlier this week, KuCoin Research released a report indicating that the crypto sector saw the public disclosure of approximately 156 investments in May, totaling around $1.02 billion. This figure is about $70 million less than the previous month, marking a 6.4% decrease from April’s $1.09 billion.
However, on a larger scale, the latest figures represent a 10.61% increase from May 2023, which had $905 million in disclosed investments.
The report underscores that this investment level reflects “ongoing capital interest and developmental potential in the industry.”More than half of the projects received funding between $1 million and $10 million.
Institutional investors showed a preference for Ethereum, EVM chains, and L2 networks such as Arbitrum and Polygon. Among non-EVM chains, Solana received the most institutional investment, followed by Bitcoin, Fantom, and TON, all of which were among the top 15 networks attracting investor interest in May.
Major Chinese institutions remained highly active, investing in emerging technologies and public chain networks. For example, Animoca was involved in about 15 deals, while OKX invested in 11 projects. Other top investors included Cogitent Ventures, SNZ Holdings, DWF Labs, Polygon Ventures, MH Ventures, Haun Ventures, Waterdrip Capital, and GBV Capital.
Modularity, Layer 2 (L2) Solutions, and Liquid Staking Derivatives (LSD) were the most favored narratives among these institutional investors.The report noted a strong willingness among institutions to pursue project exits through public listings.
Data showed a decrease in the proportion of Series A financing projects from 10% to 7.77%, while strategic financing projects rose from 15.73% to 18.45%.
Significant Change in Investor Priorities
The report indicates that investors have turned their attention to memes, celebrity tokens, emerging narratives, and assets with low market capitalization. The introduction of tokens with high valuations and limited supply has driven investors to seek alternative investment opportunities. Notcoin has notably benefited from this change in investor focus.
Furthermore, the report emphasizes that recent regulatory changes in the United States have greatly affected the legal and operational framework of the crypto market. These developments have created new challenges and considerations for investors and market participants, shaping their strategies and investment decisions.
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