Stablecoin Supplies from Tether and Circle Swell, Hinting at Solid Liquidity Behind Crypto Rally

Tether, Circle Stablecoin Supplies Soar, Signaling Strong Liquidity Boosting Crypto Rally

The market caps of the two biggest stablecoins, Tether’s USDT and Circle’s USDC, have climbed to record levels this week, underscoring a fresh influx of capital into the crypto ecosystem.

Bitcoin’s recent surge above $117,500 and broader gains across altcoins are being bolstered by this stablecoin expansion, suggesting that the ongoing rally may have solid liquidity backing rather than merely speculative enthusiasm.

Data from TradingView shows both USDT and USDC reaching all-time highs in circulating supply. Since early July, USDC’s market cap has grown by $1.3 billion, reaching $62.8 billion, while USDT has swelled by $1.4 billion to nearly $160 billion.

Looking back further, the increase is even more significant. Since crypto markets bottomed in April, USDT’s circulating supply has grown by $15.2 billion, a 10.5% rise. Over the same period, USDC has added $2.7 billion in supply, up 4.6%.

Stablecoins, which maintain pegs to fiat currencies like the U.S. dollar, serve as crucial pillars of liquidity in crypto markets, acting both as payment tools and as trading pairs on exchanges.

Analysts consider rising stablecoin balances an important signal of real capital flowing into crypto. Historically, sharp increases in USDT and USDC supplies have accompanied major bitcoin rallies—a trend noted by Cubic Analytics founder Caleb Franzen, who recently shared charts highlighting this relationship on X.

If history repeats, the latest surge in stablecoin supply could indicate that crypto markets are gaining genuine support from new capital inflows, not merely speculative fervor.