A fresh wave of liquidity entered the crypto market after stablecoin giants Tether and Circle minted a combined $2 billion in new tokens. While prices remained largely unchanged, such issuances often signal capital positioning behind the scenes, keeping traders alert for what may come next.
Tether and Circle Expand Stablecoin Supply
Blockchain data from Lookonchain has shown that Tether, the issuer of USDT, and Circle, the company behind USDC, have minted a combined $2 billion in newly issued stablecoins.
Lookonchain revealed this information in an X post on December 31, 2025, highlighting two images from Solscan and Tronscan, which captured both transactions. The Solscan data shows that Circle minted $1 billion USDC in four batches, while Tronscan reveals that Tether also minted $1 billion USDT, but in a single transaction.
Meanwhile, Tether and Circle have continued to dominate the stablecoin sector, with their respective tokens accounting for a large share of the market. Interestingly, Lookonchain had reported several minting transactions carried out by both firms this month.
On December 1, the on-chain sleuth revealed that Circle minted 750 million USDC, and Tether followed with the minting of $1 billion USDT the next day.
Why Stablecoin Minting Matters for Liquidity
Stablecoins act as the primary source of liquidity in crypto markets, serving as the on-ramp between fiat currencies and digital assets. When issuers mint large amounts of tokens, it can indicate that capital is waiting on the sidelines, ready to be deployed into assets like Bitcoin, Ethereum, or altcoins.
Interestingly, periods of elevated stablecoin issuance have coincided with rising market participation, as traders use these assets to hedge volatility or quickly enter positions. However, minting alone does not guarantee bullish momentum, as tokens can also remain idle on exchanges or in custodial wallets for extended periods.
Regulatory scrutiny has also intensified around stablecoin reserves, with major economies, including the U.S., Singapore, and the U.K., establishing rules that focus on reserve quality and transparency. As a result, each large mint event has become a focal point for analysts assessing issuer credibility and market stability.
How the Crypto Market Reacts to Fresh Token Minting
Traders closely track stablecoin minting events because large issuances can signal preparations for increased activity, whether from institutional players positioning capital or retail demand returning during volatile periods.
However, following the $2 billion minting by Tether and Circle, the broader crypto market showed cautious optimism rather than an immediate price surge. Bitcoin continues to trade below the $90,000 price level, with one BTC worth $88,780 in the hours leading up to press time. This represents a modest gain of 1.12% over the past 24 hours and 2.3% over the past week.
In the meantime, analysts note that if these newly minted tokens begin moving onto exchanges, it could increase short-term volatility and fuel upside momentum, potentially pushing BTC above the $90,000 level.
The CoinRemark Team
