Tether and Circle See Record Stablecoin Supply Growth
- USDC outpaces Tether, redefining stablecoin market dynamics.
- Supply surges align with institutional trading trends.
- Strong implications for crypto market liquidity and regulation.
Surging supply growth in stablecoins suggests a significant shift in market dynamics and investor preference, with implications for crypto liquidity and institutional involvement.
Tether and Circle’s Influence
Tether (USDT) and Circle (USDC) have seen robust stablecoin supply growth in 2025. Historically, Tether has led the market but Circle’s recent 40.4% increase to 61.4 billion has reshaped the landscape. Institutional players such as JPMorgan have shown increased interest in these stablecoins, underscoring their market relevance. The involvement of major financial institutions reflects a significant shift in the crypto trading preferences towards regulatory-friendly options.
“Stablecoins now dominate over-the-counter crypto trading, accounting for 74.6% of all institutional spot deals in the first half of 2025.” — Finery Markets
Expansion in Crypto Markets
The recent growth in stablecoin supply suggests a possible expansion in underlying crypto liquidity markets. USDC’s rise is closely tied to regulatory advantages like the EU’s MiCA regime, which has inhibited Tether’s marketability.
Financial analysts have observed that stablecoin supply growth historically signals upcoming rallies in major cryptocurrencies like BTC and ETH. This trend aligns with current institutional preferences, reshaping settlement frameworks across trading platforms. As demand for stablecoins increases, the impact is felt across DeFi protocols and Layer 1/Layer 2 projects, potentially boosting trading activity and total value locked (TVL) metrics. This surge reflects a growing reliance on stablecoins, altering financial landscapes and signaling potential for further market shifts.
