7 months ago
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KuCoin research anticipates continued capital inflow, barring negative market developments and sustaining the current positive momentum.
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.
The month witnessed a resurgence in institutional investments, coinciding with Bitcoin’s climb to a new all-time high above $73,000 after a two-year downturn. Pushed by positive market sentiments, investors directed funds into 180 crypto projects across various sectors.
Market Dynamics and Investment Trends
The KuCoin research found a continuous growth trend in both the number and scale of investment and financing projects compared to the previous year. The company said the growth signals a robust revival in the primary investment market within the current crypto economy.
While the financing scale between $10 and $100 million notably increased from 16.6% in February to 28.81% in March, seed-stage financing projects saw a slight decline from 40.86% to 37.8%.
Despite this increase, strategic stage financing projects surged to 22.83% from 16.13%.
Blockchain Performance and Investor Focus
In terms of blockchain performance, Ethereum (ETH), Bitcoin (BTC), and Polygon (MATIC) projects attracted substantial investor attention, especially following Ethereum’s layer-2 scaling solutions after the Dencun upgrade.
While Bitcoin and Polygon remained strong, Ethereum, through its layer-2 scaling solutions, topped the chart after the Dencun upgrade. For active venture capital companies participating in the crypto industry, OKX Ventures leads the way, emerging as the leader among other investors. The company participated in a total of 20 projects in March, followed by MH and Waterdrip.
When it comes to the top ten sectors that received significant attention from venture capital, key sectors such as Infrastructure (Infra), Decentralized Finance (DeFi), and Games dominated venture capital investments. In March, investment institutions favored themes revolving around AI, DEX, and Lending projects.
Market Momentum and Future Outlook
March showcased a bullish trend for the entire crypto market, particularly propelled by Bitcoin’s surge to new heights.
On March 12, Bitcoin’s spot ETF recorded a new historical high for single-day net inflows, reaching $1.05 billion. With the Bitcoin ETF’s historical inflow, the options and futures market saw significant Open Interest (OI) growth, reflecting an increased capital influx.
However, a significant delivery in the options market on March 29 caused the OI to slide. KuCoin research anticipates continued capital inflow, barring negative market developments and sustaining the current positive momentum.
