According to KuCoin Research, the low float and high FDV trend in the cryptocurrency market prompted investors to explore alternative alternatives, such as Notcoin, which had all its tokens in circulation at its inception
In May, the crypto space experienced over $1 billion in investments, a minor decrease from the previous month, according to a report published by KuCoin’s research arm.
KuCoin Research reported that 156 investments were publicly disclosed in May on June 13. Furthermore, the crypto exchange’s research branch disclosed that $1.02 billion in investment capital entered the sector.
This is a 10.61% increase from May 2023. Nevertheless, the figure indicates a 6.4% decline in comparison to April.
The margin is maintained by Ethereum, EVM blockchains, and L2s.
Ethereum, Ethereum Virtual Machine (EVM) chains, and layer-2 (L2) network initiatives continued to be popular among institutional investors in terms of investments. However, investors also favored non-EVM chains, including Bitcoin, Solana, Fantom, and TON, among May’s 15 most popular networks.
Last month, investors were most active in Animoca Brands and OKX Ventures. OKX Ventures invested in 11 ventures, while Animoca Brands participated in 15 transactions. Content Ventures, SNZ Holding, and DWF Labs were also active in May, with 10, 8, and 7 deals, respectively.
Investors are increasingly seeking alternatives due to the elevated FDV trend.
In May, KuCoin Research asserted that investors responded to concerns regarding the low float and high fully diluted valuations (FDV) trend in crypto by turning to memes and celebrity tokens.
KuCoin believes investors were left with “very limited room” due to the high valuations and low circulating supplies of launched tokens. As a result, they pursued alternatives. It was written by KuCoin Research:
“Some market participants have turned their focus towards character meme or celebrity meme tokens, relatively obscure low-market-cap assets, and new narratives.”
The researchers noted that Notcoin (NOT) was one of the tokens that benefited from this May transition. KuCoin stated that Notcoin’s growth last month was influenced by its launch with all tokens from the outset.
On June 3, NOT surpassed the prominent stablecoin USD Coin (USDC) trading volume by $1.00, becoming the fifth most-traded cryptocurrency. On June 2, the token’s market capitalization surpassed $2 billion as its price reached a new all-time high of $0.02896.