Markets

Study Finds Crypto Rallies Linked to Slower USDC Growth and Faster USDT Growth

October 21, 2026, 1:50 PM UTC (2 hours ago) · 1 source · Summarized by CryptoBipto

A study has found that during crypto market rallies, USDC growth tends to slow while USDT growth accelerates. The research examines the relationship between stablecoin supply dynamics and broader crypto market movements, challenging assumptions about stablecoins as a simple indicator of incoming capital.

WHY IT MATTERS

Stablecoins are cryptocurrencies designed to maintain a steady value, usually pegged one-to-one with the US dollar. Think of them like digital dollars that live on a blockchain. Many crypto observers watch how much stablecoin supply exists as a clue about market activity, similar to how someone might watch how much cash is sitting in brokerage accounts as a sign of potential stock buying. This study suggests that not all stablecoins behave the same way during market upswings, which means treating them as a single indicator could be misleading. For newcomers, it is a reminder that crypto market signals are often more complex than they first appear.

Stablecoins like USDC and USDT are digital tokens pegged to the US dollar, and their supply changes are often watched by market participants as a proxy for capital flowing into or out of the crypto ecosystem.

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Learn the concepts behind this

Clear explanations of the subjects this article touches, with every term defined.

What are stablecoins, NFTs and tokenized assets?What stablecoins are and how they hold a steady value, what an NFT represents, and what it means to tokenize a real-world asset.