USDC by Circle and USDT by Tether Limited have both been growing rapidly in recent weeks. Typically, when this happens, it suggests a potential surge in overall crypto market value, according to CryptoQuant data. This bullish trend is continuing to strengthen, even though USDT has been delisted for EU users on major exchanges.

USDC and USDT Growth Signals Potential Crypto Market Rally

In the past 30 days, USDT and USDC, the two biggest stablecoins, which make up 87% of the stablecoin market volume, have shown positive growth. According to the on-chain analysis firm CryptoQuant, these trends could be signs of a potential rally in cryptocurrency prices.

When the liquidity impulse grows, a rally usually follows.

USDT’s 30D market cap just turned positive (after contracting -2%), while USDC is surging 20%—its fastest pace in a year.

If stablecoin momentum continues, higher prices may be next. pic.twitter.com/fD8sQkKSKM

— CryptoQuant.com (@cryptoquant_com) January 30, 2025

USDT’s market cap has turned positive over the past 30 days after a few small adjustments. On the other hand, USDC is growing the fastest among all major USD-pegged stablecoins. Despite market uncertainty and ongoing regulatory challenges, Circle’s USDC has gained 20% in just one month.

According to a popular theory, stablecoins act as “dry powder” for Bitcoin (BTC) price growth. This means investors are keeping their money in stablecoins, waiting for prices to rise. On the other hand, if stablecoin market caps drop, it suggests traders are pulling their money out of the crypto market. As of now, USDT’s market cap is at $140 billion, while USDC has reached $53 billion. Overall, the total market cap of stablecoins is $223 billion today.

Tether (USDT) Expands to Lightning Network for Bitcoin Integration

Tether (USDT), the biggest stablecoin, has announced it’s expanding to a new blockchain. According to Tether CEO Paolo Ardoino, USDT will now be issued on the Lightning Network, which is the oldest major Layer 2 solution for Bitcoin.

BREAKING: @paoloardoino and @starkness just announced @Tether_to is launching USDT on Bitcoin’s Lightning Network ⚡️⚡️⚡️⚡️ pic.twitter.com/9ZpVh9f0yp

— Walker⚡️ (@WalkerAmerica) January 30, 2025

The Lightning Network helps scale Bitcoin (BTC) by processing some transactions off the main blockchain using payment channels, instead of broadcasting everything to the main network. This announcement comes as the crypto community is talking about USDT being delisted from Crypto.com, one of the top exchanges. Due to the new MiCA regulations in the EU, USDT will no longer be available for European users starting today, January 31, 2025.

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