Recently, there’s been a rather intriguing phenomenon in the market—not some altcoin suddenly taking off, but the issuance volumes of the two major stablecoins, USDC and USDT, surging simultaneously.

Since November 20th, USDC’s supply has skyrocketed, like it’s on steroids. According to Lookonchain’s statistics, there’s been a net increase of 10 billion coins in just one month. Looking at USDT, CMC data also shows a distinct upward curve.

Specifically, USDT’s market cap entered an upward channel starting November 20th, with several instances of sudden large issuances along the way. Over the course of a month, its supply grew from $183 billion to $185.6 billion, an increase of nearly $20 billion.

USDC’s growth is even more dramatic. Around November 20th, its market cap staged a textbook V-shaped reversal—from a low of $74 billion to over $78 billion now, a direct increase of more than $4 billion.

So the question is: who’s frantically accumulating stablecoins?

Retail investors? Definitely not. Retail typically stampedes during volatile markets and would never quietly absorb billions during a market lull.

True whales and large funds don’t look for short-term profits; what they want is systemic liquidity.

Stablecoins aren’t here for you and me to buy coffee or order takeout. They are the lifeblood of the entire on-chain financial system—the core of underlying liquidity.

When USDC and USDT are both being issued in large amounts, there are usually only three possible reasons:

First, trading demand is picking up. Whether it’s for hedging, arbitrage, preparing to buy the dip, or institutions reallocating portfolios, the first step is always to convert to “U.”

Second, institutional funds are flowing back in. It’s well-known that USDC is favored by institutions. If its supply suddenly surges, it likely means some compliant capital is entering the market.

Third, liquidity infrastructure is expanding. DeFi protocols, cross-chain bridges, lending platforms, liquidation mechanisms—every part of the ecosystem needs massive stablecoin support.

So, these newly issued “U” might not be put to use immediately, but they’re definitely waiting to be deployed.

And when stablecoins start increasing in number, it often means the market is quietly building up strength. Liquidity is returning, the water level is rising… What happens next, you know the drill.