Rising Tether and Circle Stablecoin Circulation Signals Strong Liquidity Driving Crypto Gains

Stablecoin Supplies Expand Sharply, Signaling Fresh Liquidity Behind Crypto Surge

Tether’s USDT and Circle’s USDC have reached new highs in circulating supply this week, reflecting a significant influx of liquidity that may be fueling the current crypto market rally.

Bitcoin’s climb past $117,500, along with gains across altcoins, appears to be underpinned by capital moving into the market through stablecoins, rather than purely speculative trading.

TradingView data shows USDT and USDC pushing to record levels in supply. Since the beginning of July, USDC’s market cap has grown by $1.3 billion to $62.8 billion, while USDT has added $1.4 billion, lifting its total to nearly $160 billion.

Looking further back, stablecoin growth has been even more pronounced since crypto’s lows in April. USDT’s supply has jumped by $15.2 billion, or 10.5%, while USDC has increased by $2.7 billion, representing a 4.6% gain.

Stablecoins play a crucial role in crypto markets as both safe havens and key trading pairs across exchanges. Expanding stablecoin supplies often indicate fresh money entering the ecosystem, primed to flow into assets like bitcoin and major altcoins.

Cubic Analytics founder Caleb Franzen recently highlighted on X that significant increases in stablecoin supplies have historically preceded strong bitcoin rallies. If that trend continues, the surge in USDT and USDC could be signaling further upside ahead for crypto markets.