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May Sees $1B in Crypto Investments, Slightly Down from Previous Month: KuCoin

Ruholamin Haqshanas
Last updated: | 2 min read
May Sees $1B in Crypto Investments

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.

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.

Although this marked a 10.61% increase compared to May 2023, it also indicated a 6.4% decline when compared to the month of April.

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.

Animoca Brands and OKX Ventures Become 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.

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.

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.

Considering the heightened on-chain activities observed in Q4 2023, this surge marks a substantial leap forward for the sector.

Deal volume or the number of transactions also saw a notable rise of 44.7% in the preceding quarter.

As reported, April witnessed $1.02 billion in funding spread across 161 investment rounds, slightly down from March’s $1.09 billion across 186 rounds.

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.