The cryptocurrency market saw record-breaking fund inflows this week, with strong movements in Bitcoin and Ethereum prices. Investors reacted to U.S. economic uncertainty, while new stablecoin laws raised questions for traditional banks.
Meanwhile, a leading DeFi data provider removed exchange data over reliability concerns. In South Korea, retail investors are contributing to Ethereum’s momentum.
Bitcoin Hits New High as Crypto Funds See Unprecedented Inflows
Cryptocurrency investment products brought in $5.95 billion last week, the highest weekly figure ever recorded, according to CoinShares. The inflows followed growing concerns over a potential U.S. government shutdown and weak jobs data.
Bitcoin led the week, attracting $3.6 billion. This surge in capital pushed BTC to a new peak of $126,000. The increase surpassed the previous record set in July by 35%.
CoinShares’ head of research, James Butterfill, said the inflows were likely influenced by “a delayed response to the FOMC rate cut and concerns over U.S. government stability.”
Ether investment products followed with $1.48 billion in inflows. This brings ETH’s total for the year to $13.7 billion—almost three times higher than last year.
Solana and XRP also set new records. Solana brought in $706.5 million, while XRP saw $219.4 million in inflows. These numbers indicate growing interest across several top assets, though Bitcoin continues to dominate.
Despite the price increase, there was no major activity in short investment products. Investors appeared to remain confident in the market’s direction.
Stablecoin Law Raises Pressure on Traditional Banks
A new law focused on stablecoins is raising concerns in the banking sector. The GENIUS Act, passed in July, allows stablecoin issuers to offer yield on digital dollars. This could make them a stronger alternative to traditional savings accounts.
Multicoin Capital’s managing partner, Tushar Jain, said in a post that “the GENIUS Bill is the beginning of the end for banks’ ability to rip off their retail depositors with minimal interest.” He suggested that major tech companies may soon offer stablecoin-based products with better returns and instant payments.
Jain believes firms like Google, Meta, and Apple could begin competing with banks for customer deposits by offering higher yields with faster transactions.
In August, traditional banks pushed regulators to examine whether stablecoin issuers were exploiting a gap in the law by offering interest through affiliated companies.
With stablecoins gaining regulatory support, the GENIUS Act could change how people hold and earn on their money, especially if large tech firms move quickly into this space.
DefiLlama Removes Aster DEX Data Citing Lack of Transparency
Analytics platform DefiLlama has taken down volume data for the Aster decentralized exchange. The decision was based on concerns about how the exchange reports its trading activity.
One of the platform’s co-founders, known as 0xngmi, said the volume figures for Aster’s perpetual futures closely mirrored those of Binance. “Aster doesn’t make it possible to get lower-level data, such as who is making and filling orders, so until we can get that data to verify if there’s wash trading, Aster perpetual volumes will be delisted,” he wrote.
Aster had been gaining attention as a potential rival to Hyperliquid. However, without access to user-level data, DefiLlama could not confirm whether the volume was legitimate or inflated through wash trades.
The exchange has been linked to former Binance executive Changpeng Zhao, although this connection has not been officially confirmed.
The removal of Aster’s data means fewer traders and researchers will have access to reported volumes, which may reduce the exchange’s credibility in the short term.
South Korean Retail Traders Fuel Ethereum Demand
Retail capital from South Korea is playing a key role in Ethereum’s current price levels, according to industry sources. ETH is now trading just 7% below its all-time high.
Samson Mow, CEO of Bitcoin firm Jan3, said that “about $6 billion worth of Korean retail capital” is helping keep Ethereum prices elevated. He also noted that many new investors are unaware of ETH’s performance compared to BTC over time.
Korean crypto users are actively trading on local exchanges like Upbit and Bithumb. Upbit ranked 10th worldwide for ETH futures trading volume last week, handling around $1.29 billion, based on data from CoinGlass.
In recent weeks, Ethereum influencers have traveled to South Korea to promote the asset directly to local users. The growing interest from everyday investors is seen as a major factor behind ETH’s strong price performance.
ETH futures volumes now rival those of major global exchanges, and in many cases, futures trading has more influence on short-term prices than spot markets. This makes South Korea an increasingly important player in the global Ethereum market.
