Tether and Circle Inject $1.75B as Market Rebounds After Tariff Drop

TLDR

• Tether minted over $1.5 billion in USDT on Ethereum in response to recent market volatility.
• Circle increased its USDC supply by $750 million on Solana, boosting its total holdings.
• The issuance of stablecoins follows a significant market crash triggered by Trump’s tariff announcement.
• Tether’s total supply now stands at $180 billion, with $80 billion of that on Ethereum alone.
• Investors are positioning themselves in stable assets as a hedge against further market downturns.

Following a significant market crash triggered by President Trump’s tariff announcement, both Tether and Circle minted billions of dollars’ worth of stablecoins. On October 11, blockchain analytics firm Lookonchain announced that Tether, the leading stablecoin issuer, had issued over $1 billion worth of USDT on the Ethereum blockchain. This issuance comes after a dramatic market downturn, signaling that investors are reallocating capital into stable assets.

Tether’s Massive Minting on Ethereum

Tether, the largest stablecoin issuer globally, minted $775.8 million on October 10 and another $771 million on October 11. This sudden surge in USDT issuance represents one of the most substantial bursts of minting this year. Tether’s total supply has now reached $180 billion, with $80 billion of that being on the Ethereum network alone.

Crypto analyst JA Maartun, citing data from CryptoQuant, noted,

Market experts believe the new tokens represent a shift towards stable assets in the wake of a market crash. Tether’s actions suggest that traders are positioning themselves for potential market recovery.

Circle Responds with USDC Minting

Circle, the issuer of the USDC stablecoin, minted $750 million in new tokens on Solana. This move increased USDC’s total holdings on the Solana network to $12.84 billion. The overall supply of USDC has now risen to nearly $75 billion, further emphasizing the trend toward stablecoin accumulation.

Circle’s move to mint USDC comes amid a broader strategy of shifting capital into stable assets. In response to market turmoil, Circle has positioned USDC as a secure store of value.

Despite the market crash, the quick return of capital via Tether and Circle highlights confidence in a recovery. Investors continue to use stablecoins as a hedge, waiting for the right moment to re-enter the market. Both Tether and Circle’s actions demonstrate that the stablecoin market remains a crucial component in digital asset strategies.

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