The research arm of the KuCoin exchange published a report on cryptocurrency performance in May, noting that new investments amounted to $1 billion, down slightly from April.
The report highlighted that during this period, institutional investors primarily favored Ethereum and EVM-focused platforms.
$1 billion investment
Earlier this week, KuCoin Research published a report showing that around 156 investments went public in the cryptocurrency space in May alone, with the total amount invested in the 156 projects amounting to around $1.02 billion.
The report said investment in May was about $70 million less than the previous month, down 6.4% from April’s $1.09 billion. But looking at the broader picture, the latest figure represents a 10.61% increase over May 2023, when disclosed investment stood at $905 million. The report highlighted that the new investment reflects “continued capital interest and development potential in the industry.”
Over 50% of projects raised between $1M and $10M. The most popular among institutional investors were Ethereum, EVM chains, and L2 networks such as Arbitrum and Polygon. Among non-EVM chains, Solana led institutional investment, followed by Bitcoin, Fantom, and TON, which were also among the top 15 networks attracting investor interest in May.
China’s major institutional investors are actively investing in emerging technologies and public chain networks. For example, Animoca participated in about 15 deals, and OKX invested in 11 projects. Cogitent Ventures, SNZ Holdings, DWF Labs, Polygon Ventures, MH Ventures, Haun Ventures, Waterdrip Capital, and GBV Capital also ranked in the top 10.
Modularity, Layer 2 (L2) solutions, and Liquid Staking Derivatives (LSDs) were the most popular storylines favored by these institutional investors.
For example, the report noted that there is “a strong appetite from institutional investors to exit projects through public listings” after data revealed that the proportion of Series A funded projects fell from 10% to 7.77%, while strategic funded projects increased from 15.73% to 18.45%.
A major shift in investor focus
According to the report, investors shifted their focus to memes, celebrity tokens, emerging narratives and lower market cap assets. Tokens issued at extreme valuations and limited supply prompted investors to explore alternative investment options. Knotcoin emerged as a major beneficiary of this shift in investor preferences.
Additionally, the report highlights that recent regulatory developments in the United States are having a significant impact on the legal and operational landscape of the cryptocurrency market. These changes are bringing new challenges and considerations to investors and market participants, impacting their strategies and investment decisions.
