Tether and Circle Inject Billions After Weekend Market Crash – Here’s Why
More than $1.75 billion in new USDT and USDC entered circulation after President Donald Trump’s tariff announcement on China triggered the current market crash.
On October 11, blockchain analytics agency Lookonchain reported that Tether, the world’s largest stablecoin issuer, minted roughly $1 billion price of USDT on Ethereum.
New Stablecoin Mints Suggest Investors Buying the Crypto Dip
Crypto analyst JA Maartun, citing CryptoQuant knowledge, famous that Tether minted $775.8 million on Oct. 10 and one other $771 million on Oct. 11. Notably, this represents one of many largest short-term issuance bursts this 12 months.
With this growth, Tether’s whole provide now stands at $180 billion, together with $80 billion on Ethereum alone.
Meanwhile, Circle—the issuer of USDC—minted $750 million in new tokens on Solana. This transfer boosted its whole holdings on the community to $12.84 billion and raised its total provide to just about $75 billion.
The timing of those issuances is important.
On Friday, the crypto market misplaced about $20 billion in leveraged positions following Trump’s tariff growth. This triggered a steep sell-off across major assets such as Bitcoin and Ethereum.
The ensuing liquidation cascade worn out over-extended longs and erased double-digit positive factors from earlier within the week.
However, the wave of new stablecoin mints means that market members are reallocating capital by way of steady property. Instead of exiting the area, they’re positioning themselves for renewed market alternatives.
Considering this, market analysts have interpreted the transfer as an indication that merchants are positioning to build up digital property at discounted costs.
Supporting that view, blockchain tracker Lookonchain reported that Bitmine, an Ethereum-focused investment firm, acquired roughly 128,700 ETH price about $480 million shortly after the crash.
According to the agency, six wallets tied to the ETH treasury company withdrew the funds from buying and selling platforms, FalconX and Kraken, inside hours of the downturn.
So, the swift return of capital through new USDT and USDC issuances underscores how rapidly sentiment in digital markets can rebound, even after a pointy macro-driven correction.
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