Tether and Circle Stablecoin Supplies Hit New Highs, Fueling Crypto’s Liquidity Surge
The circulating supplies of Tether’s USDT and Circle’s USDC have reached record levels this week, signaling that robust liquidity is supporting the ongoing crypto rally.
Bitcoin’s recent run past $117,500 and widespread gains in altcoins appear to be backed by fresh capital entering the ecosystem through these stablecoins rather than purely speculative trading.
Data from TradingView shows both USDT and USDC pushing into uncharted territory in terms of total supply. Since the start of July, USDC’s market capitalization has jumped by $1.3 billion to $62.8 billion, while USDT has added $1.4 billion, lifting its total to nearly $160 billion.
Zooming out further reveals even more impressive growth. Since crypto markets hit their lows in April, USDT’s circulating supply has grown by $15.2 billion, representing a 10.5% rise, and USDC has expanded by $2.7 billion, up 4.6%.
Stablecoins serve as vital liquidity channels in crypto markets, acting as safe havens and trading pairs across exchanges. Rising stablecoin balances are often interpreted as a sign that new funds are flowing into the crypto space, ready to be deployed into assets like bitcoin and major altcoins.
Cubic Analytics founder Caleb Franzen recently pointed out on X that spikes in stablecoin supply have historically coincided with significant bitcoin rallies. If this pattern holds, the recent growth in USDT and USDC supplies could be a bullish signal for the broader market.
