Circle and Tether Mint $12B in Stablecoins as Market Liquidity Expands Strongly

Circle and Tether issued $12B stablecoins in August, reflecting stronger liquidity inflows an greater trading capital across crypto exchanges.

d providingHistorical stablecoin expansions in 2020 and 2021 preceded broad market rallies, with altcoins recording gains exceeding 300% during those cycles.

In 2021 alone, Binance received incoming funds in the tune of $2B, a fact that confirms the creation of stablecoins is consistent with the preparation of investors who actively trade digital assets.

Circle and Tether were able to issue stablecoins in the amount of almost 12 billion in the last month, which indicates the increased liquidity inflow into the digital asset market.

Stablecoin Growth and Market Liquidity

Data shows that Tether and Circle have expanded their supply significantly in the past 30 days. According to Cointelegraph, the combined issuance amounted to about $12 billion in new tokens. This expansion is seen as an addition of liquidity into the broader crypto market.

Lookonchain reported that Tether recently minted another $2 billion USDT, contributing to the overall monthly increase. Such activity suggests heightened demand for dollar-pegged assets as investors position capital within exchanges. Stablecoins often serve as immediate liquidity for trading Bitcoin, Ethereum, and other assets.

Market participants monitor stablecoin supply as an indicator of exchange liquidity. Higher balances on trading platforms tend to align with periods of increased buying activity. This has led to close attention on the current growth trend.

Historical Trends of Stablecoin Expansion

Past cycles have shown that stablecoin growth often precedes wider digital asset rallies. Analysts point to previous examples where expansion in USDT supply matched upcoming bull phases in altcoins. The latest issuance by Tether and Circle is drawing similar attention from market observers.

In 2020, Tether’s market capitalization rose from $4 billion to $8 billion. Shortly after, an altcoin season followed, with many tokens rallying more than 300%. The correlation between stablecoin supply and subsequent market rallies has been widely noted across previous years.

The year 2021 also demonstrated this pattern. The combined stablecoin market grew above $100 billion, occurring alongside that year’s major altcoin rally. This historical link has led analysts to view new supply growth as a preparatory stage for future trading activity.

Current Developments and Exchange Inflows

The recent expansion has coincided with notable inflows into exchanges. Reports show that Binance alone recorded about $2 billion in new deposits during the same period. These inflows often indicate readiness for active market participation.

Circle and Tether remain the leading issuers within the stablecoin sector, commanding the largest share of supply. Their combined minting in August has therefore been closely monitored by traders. Social media posts, including one from Lookonchain, continue to track these developments in real time.

Market observers now look at whether this supply growth will translate into stronger altcoin momentum once Bitcoin and Ethereum trading stabilizes. Stablecoin creation is often interpreted as preparation for the next stage of market activity.

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