According to the report, investors have recently decreased their interest in projects with low floating supply (float) and high fully diluted market value (FDV) ratio. This situation causes investors to turn to different investment options.

In its report examining May investments, KuCoin Research unit emphasizes that over $1 billion was invested in the cryptocurrency market in that month, which is slightly less than the previous month.

Although these investments indicate an increase of 10.61% compared to May 2023, there is a decrease of 6.4% compared to April. This decline could be a hint that investors’ confidence in the crypto market has waned somewhat.

Another interesting point in the report is the projects preferred by investors. Ethereum, Ethereum Virtual Machine (EVM) chains, and Layer-2 (L2) network projects remain popular among institutional investors. However, investors’ interests are increasingly diversifying.

Non-EVM chains such as Bitcoin, Solana, Fantom and TON are also on the radar of investors. This shows that investment diversity is increasing and investors are turning to different ecosystems.

The data that most clearly reveals the change in investor preferences is undoubtedly the targets of the investments made in May. According to the report, the most active investors in May were Animoca Brands and OKX Ventures.

Many of the projects these investment funds invest in operate in new and popular sectors such as in-game assets, metaverse projects and Web3 infrastructure. This shows that investors are turning to innovative areas rather than traditional crypto projects.

But the most striking change in investor behavior relates to interest in memecoins. KuCoin Research suggests that declining interest in projects with low float and high FDV is turning investors towards memecoins. The report states that tokens launched at high valuations and low circulating supplies leave investors with “very limited space.” For this reason, investors began to turn to memecoins, where they saw greater return potential.

The report shows Notcoin (NOT) as one of the most prominent examples that benefited from this investor behavior in May. Notcoin followed a different strategy from the traditional approach by releasing all its tokens during its launch. This strategy increased investors’ interest in the token and led to a significant increase in the price and trading volume of NOT in May.

The report of KuCoin Research unit once again reveals the dynamic structure of the cryptocurrency market. Investor behavior is constantly changing and these changes affect market trends. The decrease in interest in projects with low float and high FDV ratios and the popularization of memecoins give important clues about the future of the cryptocurrency market. This underlines that investors should follow the cryptocurrency market closely and make investment decisions by thoroughly researching them.