KuCoin Research: Crypto Investments Surpass $1B in May as Interest Shifts to Meme Tokens
Summary:
KuCoin Research's recent report reveals over $1 billion in investments flowed into the crypto field in May, representing a 10.61% increase from May 2023. Ethereum, EVM chains, and L2 network projects remained popular among institutional investors. Amid concerns of low float and high fully diluted valuations in crypto, investors shifted to character meme or celebrity tokens. Among them, Notcoin benefited greatly, becoming the fifth most-traded cryptocurrency by June 3.
The investigation branch of KuCoin has released a report stating that over $1 billion flowed into the cryptocurrency field in May. This shows a minor dip from the preceding month. KuCoin Research presented these findings on June 13, noting there were 156 publicly announced investments in May. Moreover, they reported a 10.61% growth in investment capital moving into the sector in contrast to May 2023, despite a 6.4% drop in comparison to April.
Notably, Ethereum, Ethereum Virtual Machine (EVM) chains, and layer-2 (L2) network projects retained their allure for institutional investors. Nonetheless, non-EVM chains like Bitcoin, Solana, Fantom and TON were still amongst the top 15 networks attracting investor interest last month. Animoca Brands and OKX Ventures were the most proactive investors, partaking in 15 and 11 deals respectively, while other active participants included Cogitent Ventures, SNZ Holding, and DWF Labs.
According to KuCoin Research, investors in May pivoted towards memes and celebrity tokens due to concerns linked to the trend of low float and high completely diluted valuations (FDV) in the crypto universe. The researchers argue that tokens launching with high valuations and scarce circulating supplies left investors stranded with limited options, nudging them to look for alternatives.
KuCoin's study suggests some investors have shifted their attention to meme or celebrity tokens with low market caps and new narratives. One such beneficiary of this shift was Notcoin (NOT), whose initial launch with all its tokens was instrumental in its growth for the month under review. By June 3, Notcoin had risen to become the fifth most-traded cryptocurrency, outdoing the trading volume of well-known stablecoin USD Coin (USDC). Notcoin’s price peaked at $0.02896 on June 2, elevating its market capitalization above $2 billion.
Published At
6/13/2024 2:48:09 PM
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