USDT and USDC grew by nearly $3 billion in a week

• USDT and USDC Grow Nearly $3 Billion Amid Crypto Market Downturn
• Tether’s USDT recorded deposits of $1.5 billion, while Circle’s USDC recorded figures of $820 million.

Despite the positive performance that preceded it, the largest cryptocurrency market crashed on Monday. The start of this week saw all cryptocurrencies decline amid the global stock market crash. However, stablecoins defied all market odds throughout the week.

In fact, the stablecoin sector has grown in terms of market cap and supply, led by USDT and USDC.

USDT and USDC supply $3 billion in a week

Source: X

Over the past week, the supply of Tether’s USDT and Circle’s USDC has skyrocketed to $3 billion. As the cryptocurrency markets have been in a steady decline, the increased supply has signaled a greater need to buy the dip. As a result, most investors have been quick to buy the dip as cryptocurrency prices have fallen.

According to data shared on X by Lookonchain, Tether has transferred $1.3 billion to exchanges and market caps since Monday’s crash. Loconchin male,

“1.3 billion USDT have been moved from Tether’s treasury to exchanges since the market crash on August 5.”

The surge in stablecoins has been on the rise since the start of the crypto market crash, which was triggered by traders’ transfers to exchanges. In fact, Cryptoquant data revealed that USDT inflows to exchanges surged 181% between August 3 and August 6 during the market crash.

Source: CryptoQuant

Similarly, data from defiLlama indicated that Binance recorded a massive growth in USDT deposits reaching $1.5 billion.

Additionally, USDC deposits on Binance hit a record high of $820 million in just 3 days.

Source: Devilama

Simply put, the data shows that the recent market downturn presented a buying opportunity with all stakeholders turning into net buyers.

The impact of the increased buying pressure became apparent after 48 hours when markets started to recover with significant gains across the board.

Market value grows to record high

Market cap has also surged as supply has grown during the market downturn. Tether’s USDT market cap has surged to a record high of $115.4 billion after seeing sustained growth over the past three months. Similarly, USDC has maintained its growth since Circle’s MICA compliance. Over the past week, USDC increased its numbers by $1.6 billion to $34.48 billion.

Now, USDC has reached its highest yearly level since the SVB collapse in 2023.

This increase has also been noted by other cryptocurrency analysts, with David Alexander sharing his analysis on X by saying,

“Interesting moves for USDC this week as total circulating supply increased by $1.56B (4.8%) after seeing a sharp decline ahead of broader market headwinds. Most of these inflows occurred on Ethereum ($1.34B) and Solana ($356M).”

Source: Devilama

Over the past year, stablecoins have seen steady growth from $124.6 billion on August 10, 2023 to $165.4 billion, at press time. This can also be seen as a sign of increased adoption, interest, and usage, which translates into growth in USDT and USDC.