The KuCoin Research team recently released its monthly report for January, highlighting a significant resurgence in Web3 investments. During this period, seed rounds and strategic financing have increased, with 22% of projects securing funding exceeding $10 million. Compared to the previous month, the proportion of projects with funding below 10 million tokens decreased, signaling a shift in investor behavior.

Infrastructure, NFT, and Gaming have emerged as focal points, establishing dominance alongside the Ethereum Virtual Machine (EVM) ecosystem. The surge in Bitcoin options dominated headlines in January, fueled by the growing anticipation of a Spot ETF approval. Investors and market participants closely monitored regulatory developments, speculating on the potential impact of such approval on the broader cryptocurrency market.

The optimism surrounding the Spot ETF hopes and the favorable stance adopted by the Chairman of the Federal Reserve, Jerome Powell, set the stage for a surge in Bitcoin options. The net long positions of asset management institutions and large holders remained robust, signaling resilience amid global macroeconomic shifts.

Stablecoin issuance, especially USDT, continued to rise while USDC stabilized, reflecting the market’s adaptability to changes. The unexpected rise in the Bitcoin and inscription ecosystems triggered a wealth effect from BRC20 tokens, attracting a wave of CEX, crypto veterans, and venture capitalists into the inscription market.

In addition, high-speed public chains like Solana and Avalanche exhibited a strong rebound, propelling uptrends in sectors such as MEME, DePIN, and GameFi, resulting in flourishing inscription markets across various ecosystems. Layer2 trends, particularly in ETH Layer2, rebounded in Total Value Locked (TVL) after a temporary slowdown.

We can expect ongoing updates as this story evolves.