The latest report from the cryptocurrency exchange KuCoin reveals that the crypto industry saw 156 investment disclosures in May, totaling approximately $1.02 billion. This represents a 6.4% decrease from the previous month, which had a total of $1.09 billion in investments.

However, on a broader scale, the latest figures show a 10.61% increase from May 2023, which saw $905 million in disclosed investments.

More than 50% of the projects secured funding ranging from $1 million to $10 million. Institutional investors showed a strong preference for Ethereum, EVM chains, and L2 networks like Arbitrum and Polygon. Among non-EVM chains, Solana attracted the most institutional investment, followed by Bitcoin, Fantom, and TON. These networks were also among the top 15 in terms of attracting investor interest in May.

The report also highlights the active participation of major Chinese institutions. According to the report, Animoca took part in about 15 deals, while OKX invested in 11 projects. Other top participants include Cogitent Ventures, SNZ Holdings, DWF Labs, Polygon Ventures, MH Ventures, Haun Ventures, Waterdrip Capital, and GBV Capital.

The most popular narratives favored by these institutional investors were Modularity, Layer 2 (L2) Solutions, and Liquid Staking Derivatives (LSD).

According to the report, investors shifted their focus towards memes, celebrity tokens, emerging narratives, and low market cap assets. Tokens launched with extreme valuations and limited supplies led investors to explore alternative investment options. Notcoin emerged as a major beneficiary of this shift in investor preference.

Additionally, the report highlighted that recent regulatory developments in the United States have significantly impacted the legal and operational landscape of the crypto market. These changes have introduced new challenges and considerations for investors and market participants, influencing their strategies and investment decisions.