Wow! Has the stablecoin market been on steroids lately? USDC and USDT, these two partners in crime, have been printing non-stop since late November like it’s a money-printing contest.

According to Lookonchain data, USDC has surged by 10 billion in the past month, with billions being pumped onto the chain at a time. USDT hasn’t been idle either—the total supply on CMC has been skyrocketing. With these two major “dollar faucets” turned on at the same time, who’s really behind this mad liquidity rush?

**Wall Street Money Flows into USDC**

This round of issuance, especially on the USDC side, has a very telling flavor. Old money from traditional institutions like BlackRock and JPMorgan wants absolutely clean, regulated tokens when entering the space. Whether it’s buying Bitcoin ETFs or dealing with RWA (Real World Assets), the first step is converting to USDC. It’s like Circle’s printing press just got a massive pre-order. Before the battle even starts, the ammunition is being loaded—institutions are gearing up.

**Grassroots Demand Fuels USDT's Growth**

USDT, on the other hand, is a different story. Its demand comes from all over the world: everyday people in emerging markets trying to escape local currency depreciation, cross-border merchants, and even those operating in gray areas. Tether acts as an “underground central bank”—printing money without asking questions about its use. As long as the demand is wild enough, they’ll keep expanding the supply.

See what’s happening? This isn’t a coincidence—it’s a liquidity party with clear division of labor. Legitimate funds flow into compliant USDC, while riskier money heads to USDT. In the end, both fill up the crypto market pool together, lifting the water level (and prices).

**But Don’t Forget—Liquidity Cuts Both Ways**

What’s really backing these stablecoins: real cash, or “Schrödinger’s Treasuries”? That’s always been a murky issue. If trust ever breaks, the hundreds of billions in liquidity injected now could instantly become a giant vacuum, draining the entire market with it.

Liquidity is a double-edged sword. When the tide is rising, everyone’s a surfer—when it goes out, you find out who’s swimming naked.