Tether and Circle Stablecoin Supplies Swell, Fueling Crypto Market Optimism
The supply of major stablecoins is surging, signaling a wave of new liquidity supporting the recent crypto rally.
Tether’s USDT and Circle’s USDC both hit new record highs in circulation this week, coinciding with bitcoin breaking above $117,500 and altcoins posting solid gains. Analysts say this points to fresh capital flowing into crypto markets rather than purely speculative trading.
According to TradingView data, USDC’s market cap has grown by $1.3 billion since the start of July, reaching $62.8 billion. USDT has expanded by $1.4 billion over the same period, pushing its total supply close to $160 billion.
Zooming out to April lows, the growth has been even more significant: USDT has added $15.2 billion (a 10.5% increase), while USDC has grown by $2.7 billion (up 4.6%).
Stablecoins like USDT and USDC are vital for crypto markets, acting as both a safe harbor and the primary trading pair for most tokens. Rising stablecoin balances often signal investors preparing to deploy capital into riskier crypto assets.
Caleb Franzen, founder of Cubic Analytics, noted on social media that past surges in stablecoin supplies have frequently preceded major bitcoin price rallies. If history repeats, the current stablecoin boom could mean more upside ahead for crypto markets.
