Stablecoin Sees $1.6 Billion Net Increase

The supply of stablecoins has recorded a net increase of approximately $1.6 billion over the past three days. The issuance and burning of Tether (USDT), along with movements between exchanges, have drawn attention to the flow of dollar liquidity in the cryptocurrency market. In the last 24 hours, an additional 3 billion USDT was issued on the Tron (TRX) chain, of which 500 million USDT was moved from the Tether treasury to Binance shortly after issuance, while the remaining 2 billion is estimated to be for cross-chain settlement to offset Ethereum (ETH)-based Tether. Stablecoins can experience simultaneous movements across chains, adjustments in exchange inventories, and processes of redemption and burning, meaning that issuance does not directly imply an influx of buying funds into the market. Ublockchain presented a net increase of approximately $1.6 billion for Tether and USD Coin (USDC) after excluding cross-chain settlements and exchange inventory transfers. Tron is a network where Tether transfers are concentrated, and a flow of 3 billion dollars worth of stablecoins issued by Circle and Tether was also observed over two days. The flow of stablecoins can be interpreted as an indicator of exchange liquidity, and an increase in the amount of stablecoins entering exchanges can be seen as waiting buying funds. However, actual order fulfillment or asset price direction should be verified with separate data. During the same period, the price of Bitcoin (BTC) rose from $64,000 to around $80,000, but it is difficult to definitively establish a direct causal relationship between price movements and the net increase in stablecoins.

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