TL;DR
- During May, crypto market investments surpassed one billion dollars, a 10.61% increase compared to the previous year, but 6.4% lower than in April.
- The approval of the Ethereum Spot ETF by the SEC and the strong performance of the US stock market boosted confidence in the industry and crypto assets.
- The stablecoin industry showed mixed behavior, with USDe reaching new highs and PYUSD growing by 21.7%, while USDC and FDUSD declined.
During May, investments in the crypto market exceeded one billion dollars, according to a recent report from KuCoin Research. This figure represents a 10.61% increase compared to the same month last year. It seems that this year there is an improvement in market confidence despite being 6.4% lower than in April.
The market’s momentum is largely attributed to the SEC’s approval of Ethereum Spot ETFs, a historic event that strengthened investor confidence. This event, combined with the strong performance of the US stock market and the rise in the popularity of meme stocks, contributed to a significant rebound in crypto assets.
The KuCoin Research report also indicates that the stablecoin market had mixed behavior in May. While the issuance of traditional stablecoins like USDC and FDUSD experienced a decline, USDe reached new highs, standing at 2.978 billion dollars at the end of the month, making it the fourth-largest stablecoin in the market. On the other hand, PYUSD achieved a growth of 21.7%, increasing its capitalization from 327 million dollars to 398 million. This increase was catalyzed by its issuance announcement on the Solana blockchain, pointing to a new strategy focused on the retail payment scenario.
Mixed Growths in the Crypto Market
Despite the rise in Ethereum prices, the cryptocurrency’s Layer-2 ecosystem did not show a corresponding increase in activity. However, the Base and Linea platforms maintained a positive net inflow trend. In contrast, high-performance public chains and low on-chain fees have stopped attracting a significant number of players, marking the difference in the evolution of these technologies.
The Bitcoin (BTC) sector also presented interesting developments. Although BRC20 tokens continued to show weakness, assets under the Runes protocol dominated BTC trading volume. Additionally, DOG achieved a considerable increase in its market value, surpassing 800 million dollars at the end of May.
In terms of security and governance, LayerZero Labs introduced a new initiative called Self-Report Sybil Activity, which incentivizes users to report sybil activities in exchange for rewards. This measure aims to strengthen the integrity of the crypto ecosystem.
Finally, in the field of gaming and earning models in crypto, “Tap to Earn” games and mini-games within the TON ecosystem proved to be particularly attractive to the market, drawing more enthusiasts and consolidating a growing interest in this segment.
