Risk appetite across traditional and cryptocurrency markets saw a sharp rise this week, helping United States cryptocurrency funds recover the capital lost to the correction of February and March, amassing over $7.5 billion worth of weekly inflows.
Bitcoin (BTC) surpassed its old all-time high on May 21, two days after President Donald Trump confirmed ongoing ceasefire negotiations between Russia and Ukraine in a May 19 X post.
Meanwhile, popular analyst and Global Macro Investor CEO Raoul Pal warned of more fiat currency debasement, urging investors to gain more exposure to cryptocurrencies and non-fungible tokens (NFTs), as these assets āwill never be this cheap again.ā
Exponential currency debasement: āYou donāt own enough crypto, NFTsā
Cryptocurrencies and NFTs can help investors protect their eroding purchasing power during an era of exponential currency debasement, according to analysts and industry leaders.
Investing in digital assets is becoming increasingly important in the āworld of the exponential age and currency debasement,ā according to Raoul Pal, founder and CEO of Global Macro Investor.
āYou donāt own enough crypto. When you do, you donāt own enough NFTās, as art is upstream of wealth. Both will never be this cheap again,ā Pal said.
NFTs are āthe single best long term store of wealth I know and you get to buy it before network effects kick in,ā he added in another response.
āThere is some validity to the statement that NFTs, and in extension art, become a vehicle for the wealthy once a certain level of wealth is reached,ā wrote Nicolai Sondergaard, research analyst at Nansen, calling it a ānatural moveā for asset diversification.
āFor traders and investors, further down the wealth curve, NFTs are partially about speculating on future returns,ā he told Cointelegraph, adding that NFTs also benefit from the allure of strong communities, beyond just wealth creation.
US crypto funds top $7.5 billion inflows in 2025 as investor appetite grows
Crypto investment products in the United States have attracted over $7.5 billion worth of investment in 2025, with a fifth week of net positive inflows last week signaling growing investor demand for digital assets.
US-based crypto investment products attracted $785 million worth of investment last week, pushing the year-to-date (YTD) total to over $7.5 billion, according to a May 19 report by digital asset manager CoinShares.
The latest figure marks the fifth consecutive week of net positive flows, following nearly $7 billion in outflows during February and March.
The United States accounted for the bulk of inflows, with $681 million, followed by Germany at $86.3 million and Hong Kong at $24.4 million.
Crypto flows by country. Source: CoinShares
Investor demand for risk assets such as cryptocurrencies staged a significant recovery after the White House announced a 90-day pause on additional tariffs on May 12, which marked a 24% cut for import tariffs for both the US and China.
VanEck plans to launch a private digital assets fund in June targeting tokenized Web3 projects built on the Avalanche blockchain network, the asset manager said in a statement shared with Cointelegraph.
The VanEck PurposeBuilt Fund, available only to accredited investors, aims to invest in liquid tokens and venture-backed projects across Web3 sectors, including gaming, financial services, payments, and artificial intelligence.Ā
Idle capital will be deployed into Avalanche (AVAX) real-world asset (RWA) products, including tokenized money market funds, VanEck said.
The fund will be managed by the team behind VanEckās Digital Assets Alpha Fund (DAAF), which oversees more than $100 million in net assets as of May 21.Ā
āThe next wave of value in crypto will come from real businesses, not more infrastructure,ā Pranav Kanade, portfolio manager for DAAF, said in a statement.
RWAs are among cryptoās fastest-growing segments. Source: RWA.xyz
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 total stablecoin market, a steep climb from just $1.5 billion and a 1% market share at the start of 2024.
One of the biggest winners is Pendle, a decentralized protocol that enables users to lock in fixed yields or speculate on variable interest rates. Pendle now accounts for 30% of all yield-bearing stablecoin total value 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 noted that stablecoins make up 83% of its $4 billion total value locked, a sharp rise from less than 20% just a year ago. In contrast, assets such as Ether (ETH), which historically contributed 80%ā90% of Pendleās TVL, have shrunk to less than 10%.
Traditional stablecoins like USDt (USDT) and USDC (USDC) do not pass on interest to holders. With over $200 billion in circulation and US Federal Reserve interest rates at 4.3%, Pendle estimates that stablecoin holders are missing out on more than $9 billion in annual yield.
Tether surpasses Germanyās $111 billion of US Treasury holdings
Tether, the $151 billion stablecoin issuance giant, has surpassed Germany in United States Treasury bill holdings, showcasing the benefits of a diversified reserve strategy that has helped the firm navigate the volatility of the cryptocurrency market.
Tether, the issuer of the worldās largest stablecoin, USDT, has surpassed Germanyās $111.4 billion worth of US Treasurys, data from the US Department of the Treasury shows.
Foreign countries by US Treasury holdings. Source: Ticdata.treasury.gov
Tether has surpassed $120 billion worth of Treasury bills, the firm shared in its attestation report for the first quarter of 2025. That makes Tether the 19th largest entity among all counties in terms of T-bill investments.
āThis milestone not only reinforces the companyās conservative reserve management strategy but also highlights Tetherās growing role in distributing dollar-denominated liquidity at scale,ā wrote Tether in the report.Ā
During 2024, Tether was the seventh-largest buyer of US Treasurys across all countries, surpassing Canada, Taiwan, Mexico, Norway, Hong Kong and numerous other countries, Cointelegraph reported in March 2025.
According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.
Worldcoin (WLD) rose over 32% as the weekās biggest gainer in the top 100, followed by the Hyperliquid (HYPE) token, up over 30% on the weekly chart.
Total value locked in DeFi. Source: DefiLlama
Thanks for reading our summary of this weekās most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.
Keir Starmer flies out of South Africa this evening with two massive issues on his agenda – a potentially manifesto-busting budget and, as it stands, an unacceptable Ukrainian peace deal.
As he prepared to depart for London, the prime minister confirmed he was dispatching national security adviser Jonathan Powell to Geneva for talks with US officials, other European security advisers and Ukrainian representatives – as Europe and Ukraine scramble to reinsert themselves into a plan drawn up between Washington and Moscow.
The prime minister said on Saturday there was “more to do on the plan” in the coming days and the focus now was to try to make progress in Geneva.
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PM: ‘More to do’ on US Ukraine peace plan
After speaking on the phone to Donald Trump, Downing Street said the pair agreed their teams would work together on the US leader’s proposal in the Swiss city on Sunday.
Starmer also reiterated Britain’s “steadfast support for Ukraine” in a call with President Zelenskyy – as allies try to swing this deal more in Ukraine‘s favour, with the UK and other international leaders clear on their concerns to limit the size of the Ukrainian army and give up territory to Russia.
But in his remarks on camera, the prime minister was at pains to neither criticise the current deal nor President Trump.
One figure told me that the PM wants to act as a bridge between the Europeans and the US and has been playing a “game of whack-a-mole” over the past couple of days in an effort to keep others from publicly saying the deal is unacceptable for fear it would only serve to irritate President Trump and hurt Ukraine.
Image: File pic: Reuters
Earlier, the prime minister said he would talk to his US counterpart in the coming days.
“I’m absolutely clear in my mind that President Trump wants a just and lasting peace, not just from the actions he’s taken towards that end, but also from the private discussions that I’ve had with him,” Mr Starmer said.
“So I know what he’s trying to achieve. We all want to achieve that.”
But there will be a question about what the alternative options are if allies cannot improve this deal by President Trump’s Thursday deadline.
Image: The frontline in eastern Ukraine
The first option is to try to improve it and also slow down the process and buy more time, but if that fails, are allies looking at scenarios where they try to shore up Ukraine’s war efforts without the US support?
The prime minister responded by talking about point five in the 28-point plan, in which Ukraine is offered security guarantees from the US.
“That fortifies in me the belief that what we’re all trying to achieve here is a just and lasting peace will only be just as lasting if there are security guarantees,” Mr Starmer said.
“And if we bear in mind that matters for Ukraine are always to be determined by Ukraine.”
The next 24 hours will be critical as the Europeans, Ukraine and other allies try to improve this deal.
The prime minister has refused to rule out manifesto-breaking tax hikes in next week’s budget while speaking to Sky News political editor Beth Rigby.
Sir Keir Starmer was interviewed by Rigby while the pair were in South Africa for a meeting of the G20 group of nations.
Despite the government last year indicating it was not going to raise more taxes, it appears that Wednesday’s fiscal event will involve substantial increases in levies.
The 2024 Labour manifesto said: “We will ensure taxes on working people are kept as low as possible.
“Labour will not increase taxes on working people, which is why we will not increase national insurance, the basic, higher, or additional rates of income tax, or VAT.”
At the start of their interview, the prime minister was asked by Rigby if it was important for politicians to “stick to their word”.
Sir Keir said: “Yes, it is important that politicians stick to their word.
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“They have to make decisions against a political backdrop. And, we’ve also got big decisions to make in the budget that’s coming in just a few days time.”
This caveat matches the expectations that a range of taxes are going to be increased so the government can keep its spending pledges and increase its fiscal headroom amid worsening economic headwinds.
There was chaos last week after the increase in income tax that many had expected to be on the way was revealed to no longer be on the cards.
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3:20
Why has chancellor U-turned on income tax rises?
Asked specifically on the manifesto commitment on tax, Sir Keir told Rigby that decisions will be made “against a very difficult backdrop”.
In total, the prime minister refused 12 times to rule out tax rises.
He added it was “important to take the right decisions for our country”.
Rigby pointed out in the lead-up to the 2024 Budget, the prime minister was more unequivocal, saying income tax, national insurance and VAT would not all go up.
The prime minister declined to make the same promise, saying the decisions on tax will be announced on Wednesday.
However, Sir Keir said the budget will be guided by “principles”, including “fairness”.
The prime minister said the three areas he is “bearing down on” are the NHS, cutting national debt and dealing with the cost of living crisis.
One tax rise that has not been ruled out is what is known as a “stealth tax rise” of freezing income tax thresholds.
Rigby highlighted that in last year’s budget, Rachel Reeves said freezing thresholds will “hurt working people” – and asked the prime minister if he agreed.
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Sir Keir said: “We are going to set out our decisions.
“We will have absolutely in mind that the cost of living is the number one issue for people across the country.”
Pushed again, if working people will have their taxes increased, the prime minister instead mentioned he has people who are “struggling with the cost of living” in mind when making decisions.
Khurram Dara, a former policy lawyer at cryptocurrency exchange Coinbase, officially launched his campaign for New York State Attorney General.
In a Friday notice, Dara cited his āregulatory and policy experience, particularly in the crypto and fintech spaceā among his reasons to try to unseat Attorney General Letitia James in 2026.
The former Coinbase lawyer had been hinting since August at potential plans to run for office, claiming that James had engaged in ālawfareā against the crypto industry in New York.
Until July, Dara was the regulatory and policy principal at Bain Capital Crypto, the digital asset arm of the investment company. According to his LinkedIn profile, he worked as Coinbaseās policy counsel from June 2022 to January 2023 and was previously employed at the crypto companies Fluidity and Airswap.
James, who took office in 2019, has faced criticism from many in the crypto industry for filing lawsuits against companies on behalf of affected New Yorkers, including Genesis, KuCoin and NovaTech. Whoever assumes the role of New Yorkās attorney general would have significant discretion over whether to file charges against crypto companies.
Dara, who said he plans to run as a Republican, also echoed Mayor-elect Zohran Mamdaniās recent winning campaign, citing New Yorkersā concerns about the cost of living and affordability. Cointelegraph reached out to Dara for comment, but had not received a response at the time of publication.
The lawyer who represented XRP holders is also running for office again
As the deadline approached for candidates for various offices to announce their runs, former Massachusetts senatorial candidate John Deaton said he would try to unseat a Democrat again.Ā
Deaton ran against Senator Elizabeth Warren in 2024, losing by about 700,000 votes. On Nov. 10, however, he announced he would run as a Republican again, attempting to unseat Senator Ed Markey in 2026.
Deaton gained recognition in the crypto industry by advocating on behalf of XRP holders in the US Securities and Exchange Commissionās lawsuit against Ripple.
Like Dara, Deaton will be running in a race that largely favors Democrats: The last Republican to win a US Senate seat for Massachusetts was in 2010. Both candidates are expected to face competition in their respective Republican primaries.