Since the sharp crypto market crash on October 10, two of the biggest stablecoin issuers — Circle Internet Group and Tether Limited — have flooded the market with a combined $18.5 billion in new stablecoins.
Among that total, Circle alone recently minted $750 million in new USD Coin (USDC), underscoring how demand for stable, dollar-pegged crypto remains elevated amid ongoing volatility.
Surge in Stablecoin Issuance Reflects Demand for Safety and Liquidity
The issuance spree comes after a turbulent October 10 market crash that roiled major cryptocurrencies and triggered a flight to stable assets.
Analysts say the rush by Circle and Tether to mint large amounts of stablecoins signals investors are prioritizing liquidity and stability over speculative bets — often using USDC or Tether USD (USDT) as a temporary refuge or for tactical flexibility.
On-chain data suggest that much of this minting may serve as “dry powder”: capital waiting on the sidelines to be redeployed once market conditions stabilise.
What It Means for the Crypto Market
- Liquidity buffer: The influx of $18.5 billion in stablecoins replenishes liquidity in exchanges and DeFi protocols. That makes it easier for traders to move funds in and out, potentially smoothing out volatility and enabling quicker re-entry when prices rebound.
- Potential for renewed buying pressure: With large pools of USDC and USDT now circulating, some investors may be waiting to “buy the dip,” which could boost demand for major cryptocurrencies once sentiment improves.
- Indicator of risk aversion: Rather than signaling confidence in near-term rallies, the stablecoin minting wave seems more reflective of risk-off behavior — a bearish backdrop where many participants prefer the relative safety of dollar-pegged assets over volatile tokens.
A Snapshot of Recent Moves
- On December 1 — the latest reported issuance — Circle minted $750 million in USDC.
- Earlier reporting had indicated a combined total of $17.75 billion in stablecoins issued since mid-October, including several isolated USDC and USDT mints.
- Some analyses earlier in November had tracked at least $14 billion in fresh stablecoin supply since the crash — showing a steady acceleration in issuance across weeks.
What to Watch Next
As more USDC and USDT enter circulation, key questions emerge: will this supply sit idle as capital waiting on the sidelines, or redeploy into risk assets — potentially powering the next rally? Also relevant: how regulators and institutions will react to the growing size and influence of stablecoins, particularly as liquidity roles expand across trading, borrowing, and payment rails.
In short, the $18.5 billion issuance by Circle and Tether is a clear signal: for now, many in crypto are choosing safety over speculation. What happens next depends on whether that dry powder is fired, or left waiting.
