USDT and USDC Supply Rebounds After Three-Month Contraction
The combined circulating supply of USDT and USDC has increased by approximately $1.7 billion in August 2026, ending a contraction that lasted three months. This growth is noteworthy as it may indicate a gradual recovery in liquidity within the crypto market, according to insights from Crypto Twitter commentator Wu Blockchain. The implication of this recovery could lead to increased trading activity and market confidence moving forward.
The Story So Far
The recent uptick in USDT and USDC supply comes after a decline where their combined supply fell by approximately $2.6 billion in May, $6.0 billion in June, and $2.2 billion in July. A marked shift in market sentiment has emerged as Bitcoin rose from around $60,000 to nearly $80,000. However, the current increase remains modest compared to historical trends, where monthly growth above $10 billion typically signals stronger liquidity expansion. Observers note that while this rebound is encouraging, it reflects an early-stage recovery rather than the onset of substantial liquidity expansion seen in previous bull markets.
โฆ Continue reading the full article at the original source below.
