Tether And Circle Inject $12.75B To The Market In 30 Days – Details

Stablecoin giants flood crypto markets with massive liquidity injection—just another day in digital finance.

Massive Capital Influx

Tether and Circle pumped a staggering $12.75 billion into the ecosystem within a single month. That kind of liquidity doesn't just appear—it shakes markets and fuels rallies.

Market Impact Unleashed

This capital surge bypasses traditional banking bottlenecks, cutting settlement times from days to seconds. DeFi protocols soak up the liquidity like digital sponges, while traders leverage the influx for maximum positioning.

Traditional finance watches from the sidelines—still trying to figure out how to process wire transfers faster than three business days.

Tether and Circle Add Liquidity Into The Market

According to data from Lookonchain, Tether and Circle have minted a combined $12.75 billion in stablecoins over the past month, marking one of the most significant liquidity injections in recent cycles. This expansion underscores the crucial role stablecoins play in the crypto ecosystem, acting as the backbone of trading activity and serving as a bridge for capital flowing into risk assets.

The timing of this surge is notable. Bitcoin and ethereum are consolidating near critical levels, and altcoins are beginning to show signs of renewed momentum. Historically, large stablecoin mints have preceded uptrends in crypto markets, as fresh liquidity provides the fuel for traders and institutions to deploy capital more aggressively. The $12.75B increase, therefore, reflects more than just stablecoin supply growth—it signals a market preparing for potential expansion.

Still, risks remain elevated. Some analysts caution that the broader economic environment is highly unpredictable, with lingering concerns over global growth, inflationary pressures, and liquidity conditions. The volatility of traditional markets often bleeds into crypto, making sudden swings a persistent threat.

All eyes are now on the US Federal Reserve, with investors widely anticipating a rate cut at next week’s meeting. Such a move WOULD reinforce the bullish implications of the stablecoin surge, further boosting liquidity and supporting higher valuations across digital assets. Conversely, any hesitation or unexpected policy shift could magnify uncertainty, creating sharp volatility.

Tether (USDT) dominance currently stands at 4.29%, showing a modest decline after testing resistance NEAR 4.5%. The weekly chart reveals that USDT’s market share has been in a gradual downtrend since peaking above 9% in mid-2022. This decline reflects a healthier appetite for risk assets, as capital shifts out of stablecoins and into Bitcoin, Ethereum, and altcoins.

The 50-week SMA at 4.67% and the 100-week SMA at 5.02% are both trending lower, confirming persistent weakness in dominance. Meanwhile, the 200-week SMA at 5.78% sits well above current levels, acting as a ceiling that reinforces the longer-term bearish structure for USDT’s market share. As long as USDT dominance remains below the 5% threshold, the market backdrop favors capital rotation into risk assets.

However, short-term support has emerged around the 4.2%–4.3% zone, where dominance has stabilized multiple times this year. A breakdown below this range would likely signal further risk-taking by investors, potentially fueling stronger rallies in crypto. Conversely, a bounce back toward 5% would indicate rising caution and renewed demand for stablecoins.

Featured image from Dall-E, chart from TradingView