The cryptocurrency market is seeing a massive influx of fresh liquidity following the recent market crash, as stablecoin issuers Tether (USDT) and Circle (USDC) have collectively minted $4.5 billion in new tokens. This surge suggests strong institutional demand and is viewed as a potential catalyst for a market rebound.
In the immediate aftermath of the crash, Tether's multisig wallet transferred three separate $1 billion USDT transactions to its treasury, while Circle minted multiple batches totaling $250 million USDC.
This liquidity is not just confined to stablecoins; the Ethereum network is emerging as a "dual engine" for both traditional digital cash and tokenized real-world assets:
This parallel growth highlights how public blockchains are increasingly becoming the backbone for issuing and tracking major financial instruments.
While the new funds are currently in stablecoins, analysts are watching for a potential "liquidity rotation." Despite the recent minting, USDT dominance remains locked in a long-term downtrend. Historically, a weakening stablecoin dominance often precedes capital rotating out of stables and into risk assets.
If this pattern holds, the $4.5 billion inflow could soon be absorbed by Bitcoin (BTC) and altcoins. Such a rotation would provide a much-needed relief rally across the broader crypto market following the recent "bloodbath."
October 2025, Cryptoniteuae