More than $1.75 billion in new USDT and USDC has entered circulation after President Donald Trump announced tariffs on China, triggering the recent market decline.
On October 11, 2023, blockchain analytics firm Lookonchain reported that Tether, the world's largest stablecoin issuer, issued approximately $1 billion USDT on Ethereum.
New stablecoin issuances suggest investors are buying as crypto prices fall
Cryptocurrency analyst JA Maartun, citing data from CryptoQuant, said Tether issued $775.8 million on October 10 and another $771 million on October 11. Notably, this is one of the largest short-term issuances this year.
Tether Issues USDT Stablecoin on Ethereum. Source: Maarturn/XWith this expansion, Tether 's total supply now reaches $180 billion, of which $80 billion is on Ethereum alone.
Meanwhile, Circle— the issuer of USDC — issued $750 million in new Token on Solana. This move brought their total holdings on the network to $12.84 billion and increased the total supply to nearly $75 billion.
The timing of this release is remarkable.
On Friday, the cryptocurrency market lost about $20 billion in leveraged positions after Trump expanded tariffs, which triggered a sharp sell-off in major assets such as Bitcoin and Ethereum.
This chain of liquidations wiped out excessive Longing positions and erased double-digit gains from earlier in the week.
However, the wave of new stablecoin issuance shows that investors are reallocating Capital into stable assets. Instead of leaving the market, they are preparing for new market opportunities.
In light of this, market analysts have interpreted the move as a sign that traders are preparing to accumulate the digital asset at a discount.
Supporting that view, blockchain tracking firm Lookonchain reported that Bitmine, an Ethereum-focused investment firm, purchased around 128,700 ETH worth around $480 million shortly after the market crash.
According to the company, six wallets associated with the ETH treasury company withdrew funds from trading platforms, FalconX and Kraken, within hours of the market crash.
Thus, the rapid return of Capital through new USDT and USDC issuances underscores how sentiment in the digital market can recover quickly, even after a sharp correction due to macro factors.
