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 “will never be this cheap again.”
Exponential currency debasement: “You don’t own enough crypto, NFTs”
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 “world of the exponential age and currency debasement,” according to Raoul Pal, founder and CEO of Global Macro Investor.
“You don’t own enough crypto. When you do, you don’t own enough NFT’s, as art is upstream of wealth. Both will never be this cheap again,” Pal said.
NFTs are “the single best long term store of wealth I know and you get to buy it before network effects kick in,” he added in another response.
“There 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,” wrote Nicolai Sondergaard, research analyst at Nansen, calling it a “natural move” for asset diversification.
“For traders and investors, further down the wealth curve, NFTs are partially about speculating on future returns,” 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.
A day after the announcement, Coinbase exchange saw 9,739 Bitcoin worth more than $1 billion withdrawn from the exchange — the highest net outflow recorded in 2025, signaling that institutional appetite was “accelerating,” according to Bitwise’s head of European research, André Dragosch.
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.
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 VanEck’s Digital Assets Alpha Fund (DAAF), which oversees more than $100 million in net assets as of May 21.
“The next wave of value in crypto will come from real businesses, not more infrastructure,” Pranav Kanade, portfolio manager for DAAF, said in a statement.
RWAs are among crypto’s 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%–90% of Pendle’s 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 Germany’s $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 world’s largest stablecoin, USDT, has surpassed Germany’s $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.
“This milestone not only reinforces the company’s conservative reserve management strategy but also highlights Tether’s growing role in distributing dollar-denominated liquidity at scale,” wrote Tether in the report.
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 week’s 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 week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.
The Metropolitan Police has called for a planned protest in support of the banned Palestine Action group to be delayed or cancelled after Thursday’s synagogue attack in Manchester.
In a statement, the force said it wanted to deploy every available officer to protect Jewish communities, but was instead having to prepare for Saturday’s planned gathering in London’s Trafalgar Square.
Palestine Action was banned under anti-terrorism laws in July.
“The horrific terrorist attack that took place in Manchester yesterday will have caused significant fear and concern in communities across the UK, including here in London,” the Met said.
“Yet at a time when we want to be deploying every available officer to ensure the safety of those communities, we are instead having to plan for a gathering of more than 1,000 people in Trafalgar Square on Saturday in support of a terrorist organisation.
“By choosing to encourage mass law breaking on this scale, Defend Our Juries [the protest organisers] are drawing resources away from the communities of London at a time when they are needed most.”
But Defend Our Juries, which has led demonstrations against the ban on Palestine Action, said it planned to go ahead with the march.
A statement from the group on social media said: “Today, the Metropolitan Police wrote to us to ask that we postpone Saturday’s mass protest in Trafalgar Square, citing ‘significant pressure on policing’.
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“Our response in short: Don’t arrest us then.”
It comes after the home secretary criticised separate pro-Palestinian protests held last night as “fundamentally un-British” and “dishonourable”.
The Metropolitan Police said 40 people had been arrested in the course of the protest, six of whom were arrested for assaults on police officers.
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Mahmood ‘disappointed’ with pro-Palestine protests
Speaking to Anna Jones on Sky News Breakfast, Shabana Mahmood said she was “very disappointed” to see the protests go ahead, given the context.
“I think that behaviour is fundamentally un-British,” she said. “I think it’s dishonourable.”
She said the issues that had been driving the pro-Palestine protests have been “going on for some time” and “don’t look like they’re going to come to an end any day soon” – but that those behind the demonstrations could have taken a “step back”.
“They could have stepped back and just given a community that has suffered deep loss just a day or two to process what has happened and to carry on with the grieving process,” she said.
“I think some humanity could have been shown.”
Any further protests must “comply with the law and, where someone steps outside of the law of our land, they will be arrested”, the home secretary warned.
She added: “And to anybody who is thinking about going on a protest, what I would say is, imagine if that was you that has had a family member murdered on the holiest day in your faith. Imagine how you would feel and then just step back for a minute, give people a chance to grieve.
“We can get back to our protests later – just because you have a freedom doesn’t mean you have to use it.”
However, Zack Polanski, the leader of the Green Party, accused the home secretary of being “deeply irresponsible” for her comments about pro-Palestine protests.
“I think ultimately conflating protests against the genocide in Gazaand ultimately weaponising that against an anti-Semitic attack on our streets, a terrorist attack, is deeply irresponsible,” he told Sky News Breakfast.
The Green Party leader said it was “worrying when governments are increasingly trying to crush down dissent” and using “what is a brutal attack… to try and make a point about protest”.
“We need statesmanship at this moment. We need responsibility,” he added.
The two men killed outside the Heaton Park Hebrew Congregation Synagogue in Thursday’s attack have been named by police as Adrian Daulby, 53, and Melvin Cravitz, 66.
He is understood to have been granted British citizenship in 2006 when he was around 16 years old, having entered the UK as a young child.
Ms Mahmood confirmed to Sky News that the perpetrator was not known to counter-terror police and that he had not been referred to the government’s anti-terrorism scheme Prevent.
Three other people – two men in their 30s and a woman in her 60s – have been arrested on suspicion of the commission, preparation and instigation of acts of terrorism.
Asked if she was concerned about further attacks, Ms Mahmood said the government was on “high alert”.
She said there had been an increase in police resources not just in Manchester but across he country.
“We as a government want to make sure that people feel safe going about their business today; so people will see an increased police presence, particularly around synagogues and other places of interest for the Jewish community,” she said.
It’s a small party with big ambition, a handful of MPs led by a controversial but charismatic leader determined to turn anti-establishment sentiment into a major political breakthrough.
No, not Reform – it’s the Greens with a palpable new air of brashness and confidence that will be making waves this weekend, as their party conference commences in the seaside town of Bournemouth.
As a movement in the UK, they have maintained a steadfast presence over many years but have failed to really cut through nationally, with disenfranchised left-wingers more inclined to drift to the Lib Dems.
The last general election was different though, taking them from one to four MPs – no mean feat in a first past the post system.
And now a potent mixture of fractured politics and mass disappointment at Labour’s faltering first year in office has left an opportunity for even greater advancement.
Ready to seize it is their newly elected leader, Zack Polanski, whose style seems well-suited to the current climate and is far more confrontational than his gentler predecessors.
He is adept at social media and takes to it with an ease almost every other politician can only dream of – no clunky attempts at mimicking influencers or boring walking and talking in the constituency videos.
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Instead, he goes out and interviews voters himself, coming across as interested and persuasive and has even started his own podcast, which is well-executed and engaging.
Another explanation of their current momentum is their policies which are clear, memorable and indicative of their values – something that most political parties aim for but don’t often achieve.
The Greens would bring in a wealth tax aimed at the super rich, they would nationalise the water companies, they describe the assault on Gaza as genocide, they support self-ID for trans people, and of course, they want to protect the environment.
And I remembered all that without googling – how’s that for landing your message?
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‘We don’t have time to wait for Corbyn’
But of course, like all parties, especially those gaining support, they face challenges and criticism.
Their biggest obstacle as they grow will be maintaining unity amongst the increasingly disparate factions of new Green voters.
Is it possible to happily combine countryside-loving former Tories with angry ex-Labour city dwellers, pro-Gaza Muslims and trans activists?
So far, they seem to be managing it, but we’ll find out over the next few days if any cracks are starting to appear.
Another big obstacle is Nigel Farage, a figure uniquely skilled at demanding attention and dominating the political landscape.
When it comes to hoovering up the support of the disenfranchised, he’s been doing it for decades and it’s paying off, with polls now tipping him for prime minister.
Mr Polanski will accuse Labour of playing “handmaidens” to Reform’s “dangerous politics” rather than confronting it.
“When Farage says jump, Labour asks ‘how high’,” he will say.
Despite the Greens having a comparable number of MPs, they are not making the same kind of progress and like every other leader, Mr Polanksi will have to work out how to make a dent in Reform’s rise.
At the same time, they have a tricky challenger from their own side, with Jeremy Corbyn and Zarah Sultana’s chaotic new party likely to eat into their vote, if it can survive.
And finally, they also face the standard criticisms – that their sums don’t add up, that their tax and spend plans are unrealistic, that they are woke and disconnected – all of which they will need to take on to get closer to power.
These are just some of the issues that will come up in Bournemouth this weekend, where the forecast predicts a storm is coming – let’s see.
The US Securities and Exchange Commission has seemingly missed its decision deadline for the Canary Litecoin ETF, adding to uncertainty amid a government shutdown and new generic listing standards.