Market maker Wintermute reports that Near Protocol (NEAR) has emerged as the prime beneficiary of crypto's pivot to AI, defying significant outflows from Bitcoin and Ethereum spot ETFs. The report notes weekly outflows of $679 million from spot Bitcoin ETFs and $542 million from Ethereum ETFs, the highest since June, with Bitcoin dropping 3.2% and Ethereum plunging 7.0%. This occurred as the US Federal Reserve's hawkish rhetoric, confirmed by recent meeting minutes, pushed 10-year US government bond yields to a multi-year high of 5.24%.

Despite the broader market downturn, Near Protocol, historically positioned as an AI-oriented blockchain, effectively ignored the market storm. Wintermute highlights two key drivers for NEAR's momentum: the introduction of post-quantum digital signatures to strengthen network security, and a powerful short squeeze triggered by bears attempting to short NEAR along with the rest of the market.