KuCoin research, the analytics arm of the crypto exchange, has released its monthly report on market trends, sharing insights into the industry’s behavior in the past month. According to the report, the number of financing in the digital asset space increased by 50% in March to reach $1.6 million compared to February.
During the past month, there was a revival of institutional investments in Bitcoin, which soared to a new record price above $73,000 following a two-year slump. Fueled by optimistic market conditions, investors poured money into 180 different crypto projects spanning various industries.
Market Dynamics and Investment Trends
According to KuCoin’s investigation, there has been a steady increase in the quantity and size of investment and funding initiatives compared to the last year. This trend indicates a strong recovery in the primary investment sector of the current cryptocurrency market.
In March, the proportion of financing deals between $10 and $100 million grew significantly, rising from 16.6% in February to 28.8%. Meanwhile, the percentage of seed-stage financing projects slipped slightly, going from 40.9% to 37.9%.
Despite this increase, strategic stage financing projects surged to 22.83% from 16.13%.
Blockchain Performance and Investor Focus
When it comes to blockchain performance, Ethereum (ETH), Bitcoin (BTC), and Polygon (MATIC) have gained significant interest from investors. This heightened attention occurred particularly after Ethereum implemented its layer-2 scaling solutions following the London (EIP-1559) upgrade.
Bitcoin and Polygon held steady with impressive performances, but Ethereum surged forward after the Denas upgrade, thanks to its layer-2 scaling solutions. In the crypto venture capital scene, OKX Ventures has taken the top spot among investors, having invested in a total of 20 projects during March – leading the charge over MH and Waterdrip.
In terms of the most invested-in industries by venture capital, areas like Infrastructure (Infra), Decentralized Finance (DeFi), and Games were particularly popular. Last month, there was a notable preference among investment firms for projects focusing on Artificial Intelligence (AI), Decentralized Exchanges (DEX), and Lending.
Market Momentum and Future Outlook
In March, the cryptocurrency market displayed a confident upward direction, mainly driven by Bitcoin reaching new peaks.
On March 12th, a record-breaking $1.05 billion in investments poured into Bitcoin’s spot ETF in a single day. This massive injection of funds led to noticeable expansion in the Bitcoin ETF’s Options and Futures Market, demonstrating an influx of substantial capital.
On March 29, a large delivery in the options market led to a noticeable decrease in open interest (OI). Nevertheless, KuCoin’s analysis suggests that there will be further investment, assuming no adverse market occurrences and maintaining the ongoing bullish trend.
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2024-04-11 18:27