Tether and Circle quietly injected $1.5 billion of new dollar liquidity onto-chain in a two-hour window, according to on-chain data — a move that underscores how stablecoin supply responds quickly to market stress even if it doesn’t immediately signal a price rebound. What happened - Tether minted roughly $1 billion in USDT, with most of the issuance on Tron. - Circle issued about $500 million in USDC, including fresh supply on Solana. - The activity came immediately after a sharp market pullback that briefly pushed Bitcoin below $93,000 and triggered broad liquidations. Why the mints matter — and why they’re not an instant buy signal Large stablecoin creations often spark headlines and speculation, but issuance alone is not the same as deployment into the market. Newly minted USDT and USDC typically move first to issuer treasuries or intermediary wallets. From there, funds may flow to exchanges, market makers, or institutional trading desks depending on market needs. In short, fresh supply signals liquidity readiness rather than an immediate “risk-on” bet. Only when stablecoins begin moving onto centralized exchanges or into spot markets do they tend to translate into sustained buying pressure. Market context The timing of the $1.5 billion issuance aligns with a broader risk-off phase across crypto. Heightened volatility and macro uncertainty over the past week produced sharp drawdowns, reduced total market capitalization, and the unwinding of leveraged positions — conditions in which traders and institutions commonly park capital in stablecoins as a liquidity buffer. Market share and rails On Ethereum, USDT and USDC still dominate, representing nearly 90% of circulating stablecoin supply, per Dune Analytics. Tether remains the largest issuer by market cap (~60%), with Circle’s USDC holding around 30%. The recent minting activity reinforces their footprint across major chains — Ethereum, Tron and Solana — and underscores their continued role as the primary dollar rails for crypto trading and settlement. What to watch next The key follow-through indicators to monitor are: - Stablecoin inflows to centralized exchanges - Increased spot market volumes and buy-side pressure - Transfers from issuer treasuries to market-making or trading wallets Without evidence of these flows, large mints should be read as capital positioning and liquidity management, not confirmation of an imminent market reversal. Bottom line The surge in USDT and USDC supply shows liquidity is still active in the crypto ecosystem, even as participants stay cautious amid ongoing macro and market uncertainty. Whether this ready cash turns into renewed buying will depend on where that capital travels next. Source: Dune Analytics Disclaimer: AMBCrypto’s content is informational and not investment advice. Trading cryptocurrencies carries high risk; do your own research. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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