As bitcoin BTC pushed past all-time highs and other cryptocurrencies surged, the rise in stablecoin supply is offering a signal that this rally may have deeper roots.
Tether’s USDT and Circle’s USDC, the two largest dollar-pegged stablecoins, each reached new record supplies this week, according to TradingView data. Since the start of July, USDC’s market cap has grown by $1.3 billion, reaching $62.8 billion, while USDT added $1.4 billion to hit nearly $160 billion.
Looking further back to April, when the market hit a short-term low, the growth is even more pronounced. USDT expanded by $15.2 billion—roughly 10.5%—and USDC added $2.7 billion, or 4.6%.
Stablecoins are cryptocurrencies with prices tied to an external asset, predominantly to the U.S. dollar. While they have been increasingly popular for payments, the asset class serves as a key source of liquidity and trading pairs on crypto exchanges.
Hence, analysts often treat their growth as a proxy for fresh capital entering the broader crypto economy.
Previously, periods of accelerating stablecoin growth coincided with sharp rallies in bitcoin, Caleb Franzen, founder of Cubic Analytics, pointed out in a chart shared on X.