Tether's USDT and Circle's USDC Combined Supply Grew $3B Amid Crypto Market Rebound

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Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

, grew nearly $3 billion in a week, a sign that investors rushed to buy cryptocurrencies at lower prices after Monday's tumble.The market capitalization of second-largest stablecoin, USDC also grew some $1.6 billion this week to $34.5 billion, the highest since March 2023,that USDC on the Ethereum network recorded the bulk of the expansion with $1.36 billion, while USDC on Solana saw $356 million inflows.

The growth happened as customers appeared to move funds to exchanges following the sell-off. Binance, the largest crypto exchange, saw over $1.5 billion in USDT deposits and $820 million in USDC deposits in four days following the Monday crash,Digital asset broker FalconX also noted the buying pressure, saying that"pretty much all investor" types including hedge funds, venture funds and retail aggregators were"net buyers.

Stablecoins are tokenized versions of cash, bridging traditional money and blockchain-based markets and providing market participants with liquidity for trading and lending. They serve a key role in the crypto space, and expanding stablecoin supply is usually a sign of health of the broader market. The total stablecoin market cap grew rapidly between November and March, coinciding with the rally in cryptocurrency prices and bitcoinhitting a new record-high above $72,000. However, it stalled for a few months as the crypto market cooled off. Last month, it started to show signs of renewed growth.that the company plans to double its staff to 200 by mid-2025, increasing its workforce in a number of areas including compliance.

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