Crypto, NFTs are a lifeboat in the sinking fiat system: Finance Redefined

Risk urge for food throughout conventional and cryptocurrency markets noticed a sharp rise this week, serving to United States cryptocurrency funds get better 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 excessive on May 21, two days after President Donald Trump confirmed ongoing ceasefire negotiations between Russia and Ukraine in a May 19 X submit.

Meanwhile, standard analyst and Global Macro Investor CEO Raoul Pal warned of extra fiat forex debasement, urging traders to realize extra publicity to cryptocurrencies and non-fungible tokens (NFTs), as these belongings “will never be this cheap again.”

Exponential forex debasement: “You don’t own enough crypto, NFTs”

Cryptocurrencies and NFTs can assist traders defend their eroding buying energy throughout an period of exponential forex debasement, in line with analysts and business leaders.

Investing in digital belongings is changing into more and more necessary in the “world of the exponential age and currency debasement,” in line with 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 stated.

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 one other 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, analysis 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 advised Cointelegraph, including that NFTs additionally profit from the attract of robust communities, past simply wealth creation.

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US crypto funds high $7.5 billion inflows in 2025 as investor urge for food grows

Crypto funding merchandise in the United States have attracted over $7.5 billion value of funding in 2025, with a fifth week of web constructive inflows final week signaling rising investor demand for digital belongings.

US-based crypto funding merchandise attracted $785 million value of funding final week, pushing the year-to-date (YTD) complete to over $7.5 billion, in line with a May 19 report by digital asset supervisor CoinShares.

The newest determine marks the fifth consecutive week of web constructive flows, following almost $7 billion in outflows throughout February and March.

The United States accounted for the bulk of inflows, with $681 million, adopted by Germany at $86.3 million and Hong Kong at $24.4 million.

Investor demand for danger belongings reminiscent of cryptocurrencies staged a vital restoration after the White House introduced a 90-day pause on further tariffs on May 12, which marked a 24% minimize for import tariffs for each the US and China.

A day after the announcement, Coinbase trade noticed 9,739 Bitcoin value greater than $1 billion withdrawn from the trade — the highest web outflow recorded in 2025, signaling that institutional urge for food was “accelerating,” in line with Bitwise’s head of European analysis, André Dragosch.

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VanEck to launch Avalanche ecosystem fund

VanEck plans to launch a personal digital belongings fund in June concentrating on tokenized Web3 tasks constructed on the Avalanche blockchain community, the asset supervisor stated in a assertion shared with Cointelegraph.

The VanEck PurposeBuilt Fund, obtainable solely to accredited traders, goals to speculate in liquid tokens and venture-backed tasks throughout Web3 sectors, together with gaming, monetary providers, funds, and synthetic intelligence. 

Idle capital will likely be deployed into Avalanche (AVAX) real-world asset (RWA) merchandise, together with tokenized cash market funds, VanEck stated.

The fund will likely be managed by the staff behind VanEck’s Digital Assets Alpha Fund (DAAF), which oversees greater than $100 million in web belongings as of May 21. 

“The next wave of value in crypto will come from real businesses, not more infrastructure,” Pranav Kanade, portfolio supervisor for DAAF, stated in a assertion.

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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 complete stablecoin market, a steep climb from simply $1.5 billion and a 1% market share at the begin of 2024.

One of the largest 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 complete worth locked (TVL), roughly $3 billion, in line with 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 complete worth locked, a sharp rise from lower than 20% simply a yr in the past. In distinction, belongings reminiscent of Ether (ETH), which traditionally contributed 80%–90% of Pendle’s TVL, have shrunk to lower than 10%.

Traditional stablecoins like USDt (USDT) and USDC (USDC) don’t cross 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.

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Tether surpasses Germany’s $111 billion of US Treasury holdings

Tether, the $151 billion stablecoin issuance large, 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, information from the US Department of the Treasury reveals.

Tether has surpassed $120 billion value of Treasury payments, the agency shared in its attestation report for the first quarter of 2025. That makes Tether the nineteenth largest entity amongst all counties in phrases 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 purchaser of US Treasurys throughout all nations, surpassing Canada, Taiwan, Mexico, Norway, Hong Kong and quite a few different nations, Cointelegraph reported in March 2025.

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DeFi market overview

According to information from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the inexperienced.

Worldcoin (WLD) rose over 32% as the week’s largest gainer in the high 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. Join us subsequent Friday for extra tales, insights and training relating to this dynamically advancing house.