Key Insights
- Tether minted $1 billion USDT, taking total Stablecoin mints by Tether and Circle to $20 billion since October 11.
- Rising Stablecoin supply is positive news as it signals market resurgence.
- Bitcoin is up almost 10% in the past 24 hours, as other major crypto assets also surge.
Tether has minted another $1 billion worth of USDT today. The latest mint comes amid the recent market uptrend, which has seen Bitcoin’s price climb above $90,000.
Tether and Circle have minted $20 billion in new stablecoins. This issuance comes after the October 11 liquidation. The 1011 crash wiped out $19 billion in liquidations. It impacted 1.6 million people worldwide.
Increase in Stablecoin Supply Positive for Crypto
The USDT minted by Tether has sparked positive reactions among many. They consider it a good sign for the crypto market. For them, an increase in stablecoin supply means liquidity is returning to the sector.
Interestingly, overall stablecoin supply also increased by $2.6 billion in the past seven days. It has now reached $306 billion, a decline from its peak of $309 billion, but this suggests a resurgence.
Experts share this sentiment. CryptoQuant analyst Axel Adler Jr highlighted falling dollar liquidity in USDT. He suggested this may explain the drop in crypto prices.
He noted a 30‑day decline in the market cap of Tether’s USDT. This matched stablecoin outflows as BTC fell to $86,000.
He wrote:
XWIN Research also emphasised the importance of the stablecoin supply to the crypto market. The analysts stated that stablecoin supply is a more important signal than the increase in M2 supply.
Stablecoins act as the main liquidity source for on‑chain activity. They quickly mirror investor and institutional flows.
They wrote:
They added that rising stablecoin supply had preceded previous Bitcoin upside.
Crypto Market Shows Recovery Signs with Bitcoin Above $90,000
Meanwhile, the recent resurgence in stablecoin supply occurs at a time when crypto assets are experiencing a rise in value. Bitcoin surged over 8% in the past 24 hours. It hit $92,000, its highest since November 28.
With Bitcoin up, other crypto assets have also seen gains. Ethereum is up 10% and above $3,000 again. At the same time, BNB, XRP, and SOL have seen gains ranging from 8% to 12%.
However, privacy coins such as Zcash and Monero stand out as poor performers. It is unclear what is driving the positive performance and whether it would start the turnaround.
Moses K is a crypto journalist covering markets, regulation, and blockchain trends. He has written for The Coin Republic, Coinchapter, Cryptopolitan, Cryptotale, Coinspeaker, and MPost. Known for his concise, data-driven reporting, Moses focuses on price analysis, on-chain metrics, and policy developments shaping the global digital asset landscape.
