Increased stablecoin supply may influence trading dynamics, providing liquidity for exchanges and supporting market stability.
After the October 11 flash crash, stablecoin issuers Tether and Circle have poured roughly $17.75 billion of new tokens into the market.
On Nov. 28, on-chain analytics firm Lookonchain reported that Circle minted an additional $500 million USDC on Solana, lifting the combined post-crash issuance by both firms to about $17.75 billion.
This inflow of stablecoin injects massive liquidity into crypto markets. Analysts note that such large-scale mints are typically used for hedging or “buying the dip” – a sign that traders are preparing to acquire assets at lower prices.
On Oct. 10-11 the crypto market plunged, wiping out roughly $370 billion in value amid a sudden selloff. Bitcoin briefly tumbled from about $122,500 to below $110,000, a drop of 10-11%, and Ethereum slid about 20% from $4,400 to below $3,500.
In the crash’s immediate aftermath, on-chain data show Tether minted roughly $1 billion of new USDT on Ethereum on Oct. 11, and Circle issued about $750 million USDC on Solana the same day.
CryptoQuant data indicate these were some of the largest short-term issuance bursts of 2025, with $775.8M on Oct. 10 and $771M on Oct. 11 alone. By end-of-day Oct. 11, more than $1.75B of fresh USDT/USDC had entered circulation.
Issuance has continued at a torrid pace. By Oct. 19, Tether minted another $1B USDT, bringing the combined post-crash total to about $6B.
By Oct. 22 Lookonchain data put the total at $7B. On Nov. 25, Circle added $500M USDC on Solana, raising the USDC supply on Solana to roughly $10B since Oct. 11.
Tether remains dominant on Ethereum and other chains: its total supply is about $180-182 billion, roughly 58% of all stablecoin. Circle’s USDC supply is around $75-76 billion.
This torrent of new stablecoins is widely interpreted as a liquidity boost for crypto. In theory, each minted dollar-pegged token can be used to buy digital assets or provide exchange liquidity.
Historically, analysts say, large-scale stablecoin mints often presage market rebounds. In effect, many traders see the stablecoin as dry powder to deploy as prices stabilize.
The recent price action offers a hint of how this liquidity is playing out. Bitcoin has found firmer footing: after touching an $80,000 low on Nov. 22, BTC climbed about 12% and retook the $90,000 level by Thanksgiving week.
At press time BTC was trading just above $92,000. Ethereum similarly steadied, it had fallen below $3,000 during the crash but by press time was around $3,020.
Traders point out that accumulating stablecoins means people are ready to buy Bitcoin or Ether if prices hold above recent lows.
Still, risks remain. The Oct.-Nov. sell-offs were triggered by macro shocks, hawkish Fed comments, rising Treasury yields and renewed U.S.-China trade tensions.
Those factors have not fully abated. Some traders note that despite ample liquidity, a failure to reclaim key supports could leave prices vulnerable again.
Macro headwinds like high global interest rates and ongoing geopolitical uncertainty could dampen the effect of the stablecoin glut.
For now, however, the flood of USDT and USDC is a dominant theme. Market participants will watch whether this $17.75B injection translates into fresh crypto buying.
If so, it could mark a turning point: analysts argue stablecoin inflows might fuel renewed rallies in Bitcoin, Ethereum and other assets that had been battered by the crash.
Otherwise, the surplus dollars on the sidelines could simply boost stablecoin turnover without immediately lifting prices.
In either case, the unprecedented scale of new stablecoin will influence the next phase of the market cycle – at a time when traders are eagerly probing for signs of recovery.
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