Ethereum Leads Market Momentum Amid ETF Boom
Cryptocurrency markets remained broadly resilient this past week, buoyed by institutional inflows into spot Ethereum exchange-traded funds (ETFs) and a strong resurgence in decentralized finance (DeFi) activity. Ethereum (ETH) outperformed major peers, briefly crossing the $3,900 level, while Bitcoin (BTC) held steady around $118,000.
According to market analysts, Ethereum-based ETFs attracted over $5.4 billion in net inflows during July, reflecting growing institutional confidence in the asset’s long-term value. Combined Bitcoin and Ethereum ETF inflows reached a record-setting $12.8 billion, signaling robust market appetite.
DeFi Reclaims Spotlight with Rising TVL
Decentralized finance protocols saw their total value locked (TVL) rise to a three-year high of $153 billion. Ethereum-based platforms dominated the gains, while Bitcoin-native DeFi protocols surpassed $6 billion in TVL, up more than 2,000% in 18 months. Sui (SUI) was a standout, rallying over 40% in July as its TVL soared to $2.2 billion.
Analysts attribute the surge to renewed investor interest in yield-generating protocols and improved tokenomics among Layer 1 ecosystems.
Security Breaches Shake Confidence
Despite positive momentum, the crypto sector faced renewed scrutiny over platform security. Indian exchange CoinDCX reported a $44 million breach from an internal operations wallet, prompting a criminal investigation. Meanwhile, Seychelles-based BigONE lost $27 million in a hot wallet hack. Both platforms have pledged to reimburse affected users.
Separately, a new malware strain—dubbed JSCEAL—was discovered spreading via malicious ads across European markets. Security researchers warn the malware targets crypto users by impersonating popular wallets and exchanges, potentially compromising millions of accounts.
Stablecoin Regulation Gains Urgency
Regulatory developments also made headlines. In the United States, the newly passed GENIUS Act prohibits unauthorized interest-bearing stablecoins and mandates strict collateralization rules. The legislation is expected to accelerate institutional adoption by providing a clearer legal framework.
In Europe, the European Central Bank (ECB) warned that dollar-pegged stablecoins could undermine the euro’s role in cross-border payments. ECB officials are now urging swift rollout of a digital euro and stricter oversight of non-EU stablecoins to safeguard monetary sovereignty.
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