Tether, Circle Drive $9.5B Stablecoin Boom, What It Means for Bitcoin and Ethereum

Tether just minted another $1 billion in USDT, according to blockchain tracker Lookonchain, a move that comes amid a wider wave of stablecoin issuance in the last month that Lookonchain says totals $9.5 billion between Tether and Circle. The fresh supply is drawing attention from traders and analysts who watch stablecoin flows as a proxy for new liquidity entering crypto markets.

On Aug. 14–15, on-chain observers flagged a $1 billion USDT mint attributed to Tether’s treasury wallets. The mint was noted on multiple chains in previous similar episodes (Tether frequently mints on Tron and Ethereum), and commentators say much of the newly created supply often sits in Tether’s treasury until trading demand and chain swaps require issuance.

Around the same time, Lookonchain reported that Circle minted roughly $5.5 billion of USDC on Solana over the past month, part of the larger $9.5 billion combined figure being circulated on social media and by market trackers. That surge of USDC on Solana has been described by some analysts as “dry powder,” newly minted stablecoins ready to flow into exchanges, DeFi pools, or liquidity desks.

Why it Matters

Stablecoin mints are closely watched because they can signal fresh fiat-backed liquidity preparing to enter risk assets. Historically, large-scale issuances of USDT or USDC have sometimes preceded increased buying pressure in major markets, particularly Bitcoin and Ethereum, when that newly minted supply is converted into crypto.

Several market commentators linked earlier Tether mintings to periods of elevated trading volume and price rallies. Still, causation is hard to prove: mints can also reflect internal treasury management (pre-minting for future issuance) rather than immediate market flooding.

As of this report, BTC is trading around $119,095, down about 1.54% intraday, while ETH sits near $4,640.76, down roughly 1.60% on the day. These moves suggest traders have not (yet) reacted with a broad, immediate bid tied to the minting headlines. Market prices can change fast, however, and fresh stablecoin issuance remains a variable to watch if those reserves are deployed to exchanges or DeFi.

Analysts who monitor on-chain “dry powder” warn that minted stablecoins are not automatically bullish: they become market-moving only when converted into risk assets or when they increase lending and margin capacity. Crypto intelligence platforms also note that sudden large transfers (for example, movement from so-called “black hole” addresses or into multisig wallets) can create short-term volatility and speculation.

The combined $9.5 billion of stablecoins minted by Tether and Circle over the past month is a meaningful infusion of potential liquidity. Whether that liquidity turns into buying pressure for BTC, ETH and other crypto assets will depend on how quickly and where those coins are deployed. For now, spot markets show only modest downside intraday, but traders will be watching exchange inflows, on-chain movements, and order book behavior for signs that the freshly minted supply is being activated.