Global crypto investments surpass $1 billion in May, Ethereum dominates

Category: Blockchain Crypto

A performance report on cryptocurrency for May was released by Kucoin’s research division, a prominent cryptocurrency exchange. It showed that new investments totaling $1.02 billion were made in the industry.

The amount invested in the cryptocurrency market in May is marginally less than in April, indicating a slight decline. The report made clear that during the study period, institutional investors prioritized projects based on Ethereum and Ethereum Virtual Machines (EVMs).

$1B in worldwide investment

The Kucoin report went into great detail about the approximately 156 investments that were made public in the cryptocurrency industry in May. $1.02 billion has been invested in 156 different cryptocurrency projects.

The amount for May fell $7 million short of the amount for April, indicating a minor decline in the industry’s overall inflow of capital. Both the total amount of financing in the industry and the number of crypto projects increased from May 2023 onwards.

This fact, along with the recent influx of new capital into the cryptocurrency space, demonstrate the industry’s ongoing interest in capital and development prospects.

More than half of the projects, according to the report, were funded between $1 million and $10 million. The study also made clear that investors’ attention was primarily drawn to Ethereum, EVM chains, and layer 2 networks such as Polygon and Arbitrium.

Investors paid close attention to Solana since it garnered the greatest investment in the Non-Evm chain category. Bitcoin, Fantom, and Ton, which comprised the top 15 networks drawing investment in May, trailed Solana in close succession.

The investors and their priorities

In terms of total investments made in the cryptocurrency market, Chinese investors lead the world. Chinese organizations are still making investments in cutting-edge technologies and public chain networks.

Animoca, which took part in roughly 15 transactions, is the leading Chinese investor in the cryptocurrency space, followed by OKX, which has invested in 11 projects. Cogitent Ventures, SNZ Holdings, DWF Labs, Polygon Ventures, MH Ventures, Haun Ventures, Waterdrip Capital, and GBV Capital are among the other Chinese companies that made the list of the top 10 investors.

Meme coins, celebrity tokens, assets with low market capitalization, and other developing narratives were the primary areas of interest for the investors.

Due to tokens’ high prices and limited supply, investors were forced to look into other options, such as Notcoin, which was one of the most popular assets purchased in May.

Things to be aware of

As stated in the report The total amount of six conventional stablecoins issued fell to $840 million in May. Glassnode’s comprehensive data indicates that TUSD, DAI, and USDC have decreased while USDT and PYUSD are trending upward. Cryptocurrency assets known as stablecoins are those whose value is based on the US dollar’s value.

The report also mentioned how big cryptocurrency projects are starting to strengthen their security by implementing a sophisticated set of controls called Sybil screening measures.

Market dynamics shaping crypto’s future

The cryptocurrency market continues to evolve, fueled by developing stories and groundbreaking initiatives that foster expansion.

The meme coin, celebrity token, and small-cap asset segment continues to show signs of dynamic development due to heightened investor attention. Moreover, the implementation of advanced security measures by major crypto projects demonstrates the industry’s progress and increasing professionalism.

The slight decrease in investment figures between April and May does not indicate a loss of investor confidence but rather a temporary fluctuation in market trends. However, Ethereum’s dominance, along with investments in alternative chains like Solana, points to a market that is becoming more diverse and sophisticated.

The future outlook for crypto investments

As the crypto landscape continues to evolve, investors will remain focused on projects with strong fundamentals and innovative solutions.

Chinese institutions’ continued involvement and investment in public chain networks and emerging technologies are expected to shape the future of the market.

The continuous advancement and strengthening of complex security systems, such as Sybil screening measures, among leading crypto projects instills a sense of reassurance and trust in the minds of long-term investors.

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