As bitcoin BTC$117,987.11 pushed past all-time highs and other cryptocurrencies surged, the rise in stablecoin supply is offering a signal that this rally may have deeper roots.Tether’s USDT and Circle’s USDC, the two largest dollar-pegged stablecoins, each reached new record supplies this week, according to TradingView data. Since the start of July, USDC’s market cap has grown by $1.3 billion, reaching $62.8 billion, while USDT added $1.4 billion to hit nearly $160 billion. Looking further back to April, when the market hit a short-term low, the growth is even more pronounced. USDT expanded by $15.2 billion—roughly 10.5%—and USDC added $2.7 billion, or 4.6%. Stablecoins are cryptocurrencies with prices tied to an external asset, predominantly to the U.S. dollar. While they have been increasingly popular for payments, the asset class serves as a key source of liquidity and trading pairs on crypto exchanges. Hence, analysts often treat their growth as a proxy for fresh capital entering the broader crypto economy. Previously, periods of accelerating stablecoin growth coincided with sharp rallies in bitcoin, Caleb Franzen, founder of Cubic Analytics, pointed out in a chart shared on X. Listen, it's super simple...🟠 Bitcoin $BTCUSD🟢 Stablecoins $USDT + $USDCNotice anything? pic.twitter.com/tn3dtduiUK— Caleb Franzen (@CalebFranzen) July 10, 2025 Read more: Bitcoin's 'Low Volatility' Rally From $70K to $118K: A Tale of Transition From Wild West to Wall Street-Like Dynamics