Ethereum News Today: Ethereum Demand Surges as $1.7B Withdrawn from Aave Pushes Borrowing Rates Above 10%

Ethereum’s demand has surged amid a significant liquidity shift in decentralized finance (DeFi), with $1.7 billion in Ethereum withdrawn from the Aave lending protocol over the past week. This withdrawal has led to a sharp contraction in available liquidity, temporarily pushing Aave’s borrowing interest rates above 10%. The movement reflects growing institutional interest in tokenized money market funds, as Wall Street giants like Goldman Sachs and BNY prepare to offer institutional investors access to real-time settlement and 24/7 market operations through such products [1]. The shift underscores the accelerating integration of traditional finance (TradFi) into crypto ecosystems, though it also highlights the volatility inherent in DeFi markets when large-scale capital flows occur.

Meanwhile, Federal Reserve Chair Jerome Powell faces legal scrutiny as Azoria Capital filed a federal lawsuit demanding the Fed open its Federal Open Market Committee (FOMC) deliberations to the public. The case, filed in Washington, D.C., seeks a temporary restraining order to compel transparency ahead of the central bank’s critical interest rate decision meeting in early November. The lawsuit argues that the Fed’s closed-door process lacks accountability, though legal experts note the outcome could hinge on the court’s interpretation of the central bank’s operational independence [2]. The move adds to a broader debate over central bank governance, particularly as crypto markets, which remain highly sensitive to interest rate changes, continue to grapple with the Fed’s inflation-fighting measures.

The crypto sector is also bracing for a wave of initial public offerings (IPOs), with BitGo’s potential listing joining broader optimism spurred by recent U.S. legislative developments. President Donald Trump’s signing of three crypto-related bills has ignited speculation about regulatory clarity and investor confidence, though the sector’s path to public markets remains uncertain. In China, early signs of policy easing in the cryptocurrency space have emerged, though no formal steps toward reversing strict regulations have been announced. Analysts highlight four major crypto firms as potential IPO candidates, though market conditions and global macroeconomic trends will ultimately dictate the timing and success of such listings [3].

Sources: [1] [Ethereum Demand Skyrockets on Aave! Banks Incoming!](https://coinmarketcap.com/community/articles/688291e4747ff0612d594b21/) [2] [Jerome Powell Under Attack! Crypto Market Update](https://coinmarketcap.com/community/articles/688291e4747ff0612d594b21/) [3] [MEGA Crypto IPO’s Incoming: China Braces For Impact!](https://coinmarketcap.com/community/articles/688291e4747ff0612d594b21/)