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Tether and Circle minted a combined $1.5 billion in dollar-pegged stablecoins in about two hours, according to Lookonchain. The issuers split the mint into several large transactions across multiple networks.
The timing drew attention after a sharp pullback pushed Bitcoin (BTC) briefly below $93,000 and triggered widespread liquidations. However, stablecoin creation signals liquidity readiness, not instant buying pressure.
Tether minted $1 billion of USDt (USDT), with most of the issuance on the Tron network, according to Lookonchain. The issuer executed the mint through multiple large transactions within a short window.
That structure matters because it points to deliberate supply expansion. Concentrated issuance can reflect demand planning rather than an isolated, routine mint.
New USDT does not always enter exchanges immediately. Tether commonly places freshly minted tokens into issuer-controlled treasury wallets before later transfers.
Follow-on wallet movements often shape how traders read the event. If treasury wallets send USDT to exchange addresses, liquidity can rise quickly across venues.
Circle minted roughly $500 million of USD Coin (USDC) over the two-hour period, according to Lookonchain. The activity included a new supply on Solana, adding dollar liquidity on another major network.
The parallel issuance by both issuers stood out because stablecoin creation had stayed relatively subdued during recent low-volatility conditions. Consequently, the sudden burst suggested that liquidity requirements may be rising again.
Newly minted USDC can support market-making inventory, collateral needs, and settlement workflows once it moves beyond issuer wallets. Meanwhile, some counterparties may keep the balances on-chain as ready capital.
Stablecoins often serve as a parking place during uncertain markets. Traders can hold dollar exposure while they wait for clearer direction in spot and derivatives markets.
Also Read: USDT vs. USDC: Which Stablecoin is Dominating the Market?
Market participants often watch large stablecoin mints as a gauge of demand for on-chain dollars. Lookonchain highlighted the scale, the speed, and the multi-transaction pattern.
Exchanges, market makers, and institutional clients can request new stablecoin inventory to position capital ahead of expected market activity. In addition, desks can use stablecoins as working capital for liquidity provisioning.
Issuers typically mint first and distribute later. Still, past periods of rapid stablecoin supply growth have often coincided with rising trading volumes and heavier leverage usage across spot and derivatives markets.
Furthermore, the minting came after a period of market stress. During drawdowns, stablecoins often serve as a liquidity buffer and may support traders as leveraged positions unwind and risk appetite cools.
Tether and Circle hold a dominant share of stablecoin circulation. As a result, many traders watch their issuance patterns for market signals. When both expand supply in close succession, the market often reads it as demand from larger participants.
Dune Analytics data shows USDT and USDC make up nearly 90% of circulating stablecoin supply on Ethereum. The same data lists Tether as the largest issuer by market capitalization at 60%. Circle holds 30% as the second-largest.
Those shares underline the role of USDT and USDC as key dollar rails for crypto trading and settlement. In addition, both stablecoins operate across major networks. These include Tron, Ethereum, and Solana.
