Stablecoin supply grows again after three months of contraction

After three consecutive months of contraction, the combined supply of USDT and USDC is growing again. In August 2026, the circulating amount increased by approximately $1.7 billion, according to data from WuBlockchain. Still, the growth remains limited compared with earlier periods of strong liquidity expansion, which, according to the analysts, indicates that the market is in an early recovery phase.

In short:

• USDT and USDC together grew by $1.7 billion in August after three months of contraction
• Between May and July, the combined supply fell by a total of more than $10 billion
• Current growth remains far behind the levels reached in earlier bull markets

Three months of contraction come to an end

From May through July, the combined supply of USDT and USDC fell sharply. In May it declined by roughly $2.6 billion, in June by $6.0 billion and in July by a further $2.2 billion. The August growth of $1.7 billion puts a stop to that sequence, but it nowhere near fully compensates for the decline.

Historically, monthly stablecoin growth of more than $10 billion is seen as a threshold for solid liquidity expansion. In 2021 and again in late 2024, that boundary was comfortably exceeded, with monthly increases of more than $18 billion. During the bull market of 2025, monthly growth regularly ranged between $8 billion and $12 billion.

Bitcoin recovers, stablecoins lag behind

Bitcoin is currently trading around $80.000, a recovery from roughly $60.000 earlier this year. Despite that price rise of more than 3% in the past 24 hours, growth in the stablecoin supply has not yet returned to levels that are normal during an active bull market phase.

That difference is striking. Stablecoins act as dry powder on the market: capital that is ready to be deployed. A limited increase in supply suggests that, for now, there is no large-scale inflow of new capital. Realised profits on Bitcoin already reached record levels earlier this year, but the stablecoin figures have yet to catch up.

According to WuBlockchain, the current situation points to an early recovery in liquidity, not to the start of a new phase of large-scale inflows. Whether that changes depends partly on how quickly the stablecoin supply picks up in the coming months. Relevant in this regard is also how the market develops around new stablecoin initiatives from major financial institutions.