Danger urge for food throughout conventional and cryptocurrency markets noticed a pointy rise this week, serving to United States cryptocurrency funds recuperate the capital misplaced to the correction of February and March, amassing over $7.5 billion value of weekly inflows.
Bitcoin (BTC) surpassed its previous all-time high on Might 21, two days after President Donald Trump confirmed ongoing ceasefire negotiations between Russia and Ukraine in a Might 19 X submit.
In the meantime, well-liked analyst and International Macro Investor CEO Raoul Pal warned of extra fiat foreign money debasement, urging traders to achieve extra publicity to cryptocurrencies and non-fungible tokens (NFTs), as these property “won’t ever be this low-cost once more.”
Exponential foreign money debasement: “You don’t personal sufficient crypto, NFTs”
Cryptocurrencies and NFTs might help traders defend their eroding buying energy throughout an period of exponential foreign money debasement, in accordance with analysts and business leaders.
Investing in digital assets is turning into more and more vital within the “world of the exponential age and foreign money debasement,” according to Raoul Pal, founder and CEO of International Macro Investor.
“You don’t personal sufficient crypto. Once you do, you don’t personal sufficient NFT’s, as artwork is upstream of wealth. Each won’t ever be this low-cost once more,” Pal stated.
NFTs are “the one greatest long run retailer of wealth I do know and also you get to purchase it earlier than community results kick in,” he added in one other response.
“There may be some validity to the assertion that NFTs, and in extension artwork, grow to be a car for the rich as soon as a sure degree of wealth is reached,” wrote Nicolai Sondergaard, analysis analyst at Nansen, calling it a “pure transfer” for asset diversification.
“For merchants and traders, additional down the wealth curve, NFTs are partially about speculating on future returns,” he instructed Cointelegraph, including that NFTs additionally profit from the attract of sturdy communities, past simply wealth creation.
US crypto funds prime $7.5 billion inflows in 2025 as investor urge for food grows
Crypto funding merchandise in the US have attracted over $7.5 billion value of funding in 2025, with a fifth week of web optimistic inflows final week signaling rising investor demand for digital property.
US-based crypto investment merchandise attracted $785 million value of funding final week, pushing the year-to-date (YTD) whole to over $7.5 billion, according to a Might 19 report by digital asset supervisor CoinShares.
The newest determine marks the fifth consecutive week of web optimistic flows, following practically $7 billion in outflows throughout February and March.
The US accounted for the majority of inflows, with $681 million, adopted by Germany at $86.3 million and Hong Kong at $24.4 million.
Investor demand for danger property akin to cryptocurrencies staged a major restoration after the White Home announced a 90-day pause on further tariffs on Might 12, which marked a 24% lower for import tariffs for each the US and China.
A day after the announcement, Coinbase exchange saw 9,739 Bitcoin value greater than $1 billion withdrawn from the change — the very best web outflow recorded in 2025, signaling that institutional urge for food was “accelerating,” in accordance with Bitwise’s head of European analysis, André Dragosch.
VanEck to launch Avalanche ecosystem fund
VanEck plans to launch a non-public digital property fund in June concentrating on tokenized Web3 initiatives constructed on the Avalanche blockchain community, the asset supervisor stated in a press release shared with Cointelegraph.
The VanEck PurposeBuilt Fund, accessible solely to accredited traders, goals to spend money on liquid tokens and venture-backed initiatives throughout Web3 sectors, together with gaming, monetary companies, funds, and synthetic intelligence.
Idle capital will probably be deployed into Avalanche (AVAX) real-world asset (RWA) merchandise, together with tokenized cash market funds, VanEck stated.
The fund will probably be managed by the workforce behind VanEck’s Digital Belongings Alpha Fund (DAAF), which oversees greater than $100 million in web property as of Might 21.
“The subsequent wave of worth in crypto will come from actual companies, no more infrastructure,” Pranav Kanade, portfolio supervisor for DAAF, stated in a press release.
Yield-bearing stablecoins surge to $11 billion, now 4.5% of market: Report
Yield-bearing stablecoins have soared to $11 billion in circulation, representing 4.5% of the overall stablecoin market, a steep climb from simply $1.5 billion and a 1% market share at first of 2024.
One of many greatest winners is Pendle, a decentralized protocol that permits customers to lock in mounted yields or speculate on variable rates of interest. Pendle now accounts for 30% of all yield-bearing stablecoin whole worth locked (TVL), roughly $3 billion, according to a report from Pendle compiled by analysts from Spartan Group and Modular Capital shared with Cointelegraph.
The report famous that stablecoins make up 83% of its $4 billion whole worth locked, a pointy rise from lower than 20% only a yr in the past. In distinction, property akin to Ether (ETH), which traditionally contributed 80%–90% of Pendle’s TVL, have shrunk to lower than 10%.
Conventional stablecoins like USDt (USDT) and USDC (USDC) don’t move on curiosity to holders. With over $200 billion in circulation and US Federal Reserve rates of interest at 4.3%, Pendle estimates that stablecoin holders are lacking out on greater than $9 billion in annual yield.
Tether surpasses Germany’s $111 billion of US Treasury holdings
Tether, the $151 billion stablecoin issuance big, has surpassed Germany in United States Treasury invoice holdings, showcasing the advantages of a diversified reserve technique that has helped the agency navigate the volatility of the cryptocurrency market.
Tether, the issuer of the world’s largest stablecoin, USDT, has surpassed Germany’s $111.4 billion value of US Treasurys, knowledge from the US Division of the Treasury shows.
Tether has surpassed $120 billion value of Treasury payments, the agency shared in its attestation report for the primary quarter of 2025. That makes Tether the nineteenth largest entity amongst all counties when it comes to T-bill investments.
“This milestone not solely reinforces the corporate’s conservative reserve administration technique but additionally highlights Tether’s rising function in distributing dollar-denominated liquidity at scale,” wrote Tether within the report.
Throughout 2024, Tether was the seventh-largest purchaser of US Treasurys throughout all international locations, surpassing Canada, Taiwan, Mexico, Norway, Hong Kong and quite a few different international locations, Cointelegraph reported in March 2025.
DeFi market overview
In keeping with knowledge from Cointelegraph Markets Pro and TradingView, many of the 100 largest cryptocurrencies by market capitalization ended the week within the inexperienced.
Worldcoin (WLD) rose over 32% because the week’s greatest gainer within the prime 100, adopted by the Hyperliquid (HYPE) token, up over 30% on the weekly chart.
Thanks for studying our abstract of this week’s most impactful DeFi developments. Be a part of us subsequent Friday for extra tales, insights and schooling relating to this dynamically advancing area.