Risk tolerance across conventional and cryptocurrency markets experienced a marked increase this week, aiding U.S. cryptocurrency funds in recuperating the losses incurred during the corrections of February and March, with over $7.5 billion in weekly inflows.<\/p>\n
Bitcoin (BTC<\/a>) exceeded its former record high<\/a> on May 21, just two days following President Donald Trump’s announcement of ongoing ceasefire discussions between Russia and Ukraine in a May 19 X post.<\/p>\n Simultaneously, notable analyst and Global Macro Investor CEO Raoul Pal cautioned against further fiat currency depreciation, encouraging investors to increase their exposure to cryptocurrencies and non-fungible tokens (NFTs), asserting that these assets \u201cwill never be this inexpensive again.\u201d<\/p>\n Cryptocurrencies and NFTs offer a means for investors to shield their diminishing purchasing power during a period of exponential currency depreciation, per analysts and industry figures.<\/p>\n Investing in digital assets<\/a> is becoming progressively pertinent in the \u201crealm of the exponential age and currency depreciation,\u201d according<\/a> to Raoul Pal, founder and CEO of Global Macro Investor.<\/p>\n \u201cYou don\u2019t possess sufficient crypto. When you do, you still don\u2019t own enough NFTs, as art leads to wealth. Both will never be this affordable again,\u201d Pal stated.<\/p>\n NFTs represent \u201cthe single best long-term store of wealth I am aware of, and you have the opportunity to acquire it before network effects materialize,\u201d he remarked in another comment.<\/p>\n \u201cThere is some merit to the claim that NFTs, and by extension art, transform into a medium for the affluent once a specific wealth threshold is crossed,\u201d wrote Nicolai Sondergaard, research analyst at Nansen, labeling it a \u201cnatural progression\u201d towards asset diversification.<\/p>\n \u201cFor traders and investors lower on the wealth spectrum, NFTs are partially about speculating on future yields,\u201d he communicated to Cointelegraph, adding that NFTs also thrive due to the attraction of formidable communities, beyond mere wealth generation.<\/p>\n Continue reading<\/strong><\/a><\/p>\n Crypto investment vehicles in the United States have drawn over $7.5 billion in investment during 2025, with a fifth consecutive week of net positive inflows last week indicating increased investor interest in digital assets.<\/p>\n U.S.-based crypto investment<\/a> products secured $785 million in investments last week, raising the year-to-date (YTD) total to over $7.5 billion, according<\/a> to a May 19 report by digital asset management firm CoinShares.<\/p>\n This latest figure signifies the fifth consecutive week of net positive inflows, following nearly $7 billion in outflows during February and March.<\/p>\n The United States represented the majority of inflows, totaling $681 million, followed by Germany with $86.3 million and Hong Kong with $24.4 million.<\/p>\n Investor interest in risk assets such as cryptocurrencies staged a significant rebound following the White House announced<\/a> a 90-day suspension<\/a> on further tariffs on May 12, which resulted in a 24% reduction for import duties for both the United States and China.<\/p>\n One day post-announcement, Coinbase exchange observed<\/a> withdrawals of 9,739 Bitcoin, valued at more than $1 billion\u2014the highest net outflow recorded in 2025\u2014indicating that institutional demand was \u201caccelerating,\u201d according to Bitwise\u2019s head of European research, Andr\u00e9 Dragosch.<\/p>\n Continue reading<\/strong><\/a><\/p>\n VanEck is set to launch a private digital assets fund in June focused on tokenized Web3 projects established on the Avalanche blockchain network, the asset manager mentioned in a statement shared with Cointelegraph.<\/p>\n The VanEck PurposeBuilt Fund, exclusively available to accredited investors, intends to invest in liquid tokens and venture-supported initiatives throughout Web3 domains, including gaming, financial services, payment solutions, and artificial intelligence.<\/p>\n Excess capital will be allocated to Avalanche (AVAX<\/a>) real-world asset (RWA) products, VanEck stated.<\/p>\n The fund will be overseen by the team managing VanEck\u2019s Digital Assets Alpha Fund (DAAF), which handles over $100 million in net assets as of May 21.<\/p>\n \u201cThe upcoming wave of value in crypto will stem from genuine enterprises, not additional infrastructure,\u201d stated Pranav Kanade, portfolio manager for DAAF, in a statement.<\/p>\n Continue reading<\/strong><\/a><\/p>\n Yield-generating stablecoins have surged to $11 billion in circulation, accounting for 4.5% of the overall stablecoin market, a significant increase from just $1.5 billion and a 1% market share at the beginning of 2024.<\/p>\n One of the primary beneficiaries is Pendle, a decentralized protocol that allows users to secure fixed yields or speculate on fluctuating interest rates. Pendle now holds 30% of all yield-generating stablecoin total value locked (TVL), approximately $3 billion, according<\/a> to a report from Pendle compiled by analysts from Spartan Group and Modular Capital shared with Cointelegraph.<\/p>\n The report highlighted that stablecoins constitute 83% of its $4 billion total worth locked, a significant increase from below 20% merely a year prior. Conversely, assets like Ether (ETH)<\/a>, which traditionally accounted for 80%\u201390% of Pendle\u2019s TVL, have diminished to under 10%.<\/p>\n Conventional stablecoins like USDt (USDT)<\/a> and USDC (USDC<\/a>) do not relay interest to holders. With more than $200 billion in circulation and US Federal Reserve interest rates set at 4.3%, Pendle estimates that stablecoin holders are forfeiting over $9 billion in annual returns.<\/p>\n Continue reading<\/strong><\/em><\/a><\/p>\n Tether, the $151 billion stablecoin issuance giant, has outpaced Germany in United States Treasury bill holdings, illustrating the advantages of a diversified reserve strategy that has aided the firm in weathering the volatility of the cryptocurrency market.<\/p>\n Tether, the issuer of the world’s largest stablecoin, USDT, has exceeded Germany’s $111.4 billion in US Treasurys, data from the US Department of the Treasury discloses<\/a>.<\/p>\n Tether has surpassed $120 billion in Treasury bills, the firm revealed in its attestation report<\/a> for the first quarter of 2025. This positions Tether as the 19th largest entity globally in terms of T-bill investments.<\/p>\n \u201cThis achievement not only reinforces the company\u2019s prudent reserve management strategy but also underscores Tether\u2019s expanding role in distributing dollar-denominated liquidity at scale,\u201d stated Tether in the report.<\/p>\n During 2024, Tether emerged as the seventh<\/a>-largest purchaser of US Treasurys worldwide, surpassing Canada, Taiwan, Mexico, Norway, Hong Kong, and various other countries, Cointelegraph reported in March 2025.<\/p>\n Continue reading:<\/strong><\/a><\/p>\n According to information from Cointelegraph Markets Pro<\/a> and TradingView, the majority of the 100 largest cryptocurrencies by market capitalization concluded the week positively.<\/p>\n Worldcoin (WLD<\/a>) surged over 32% as the week\u2019s standout winner in the top 100, trailed by the Hyperliquid (HYPE<\/a>) token, which saw an increase of over 30% on the weekly chart.<\/p>\n Thank you for reading our recap of this week\u2019s most significant DeFi developments. Join us next Friday for more stories, insights, and educational content related to this rapidly evolving domain.<\/p>\n <\/p>\n<\/div>\nExponential currency depreciation: \u201cYou don\u2019t possess sufficient crypto, NFTs\u201d<\/h2>\n
US crypto funds exceed $7.5 billion inflows in 2025 as investor enthusiasm rises<\/h2>\n
VanEck to introduce Avalanche ecosystem fund<\/h2>\n
Yield-generating stablecoins rise to $11 billion, now 4.5% of market: Report<\/h2>\n
\n“““html<\/p>\nTether surpasses Germany\u2019s $111 billion in US Treasury holdings<\/h2>\n
Overview of the DeFi market<\/h2>\n