After crypto rallies, stablecoin supply growth rises for USDT but slows for USDC

A crypto rally does not lift demand for every stablecoin in the same way. Coin Metrics finds that stablecoin supply growth tends to accelerate for USDT in the week following a rally, while USDC’s expansion slows—a split the study links to their different roles in trading, leverage and on-chain yields. Key takeaways USDT issuance strengthens after rallies; USDC growth typically eases. Perpetual futures funding rates provide the strongest signal for the following week’s supply changes. USDC’s growth also responds to the gap between on-chain yields and Treasury bill rates. Stablecoin supply growth splits after rallies USDT tends to expand as traders build leveraged exposure, while USDC minting increases during market declines.

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