USDC Treasury’s $250M Mint Lands as USDT Still King

• USDC’s $250M mint hints at rising institutional demand amid stablecoin expansion.
• Stablecoin market gains $2.1B in a week, signaling renewed investor confidence.
• Decentralized stablecoins remain volatile, diverging from centralized asset stability.

A fresh $250 million USD Coin (USDC) mint by the USDC Treasury is getting attention from crypto market watchers. This large transaction, highlighted by Whale Alert, comes as the overall stablecoin sector shows steady growth. 

With nearly $250 million in new USDC entering the system, traders are now debating if this fresh capital signals rising demand, possibly from institutions, or if it might hint at an upcoming price move in major crypto assets. This new liquidity arrives as other metrics show stablecoin market caps are generally trending up.

Stablecoin Sector Expands; USDT Still King

The total market cap for stablecoins now stands just above $236.6 billion, according to DefiLlama data. That’s a $2.135 billion (+0.91%) increase over the past week, showing continued positive momentum.

Tether (USDT) remains the dominant player, controlling a hefty 61.77% market share. USDT has maintained stability, with its circulating supply up 0.26% daily, 0.50% weekly, and 1.17% monthly.

Related: Can USDC Catch Up? Stablecoin Market Heats Up as Tether Holds the Top Spot

Beyond Tether, USD Coin (USDC) has also been strong. It reliably holds its $1 peg, helped by widespread cross-chain use on over 100 networks. USDC’s circulating supply grew 0.27% daily, 2.27% weekly, and a solid 3.61% over the past month. This growth points to renewed confidence in USDC, possibly linked to institutional activity signaled by the large mint.

Decentralized Stablecoins Show More Volatility

While centralized giants like USDT and USDC hold their dollar pegs tightly, decentralized stablecoins tend to fluctuate more. Ethena’s USDe, for example, is currently trading about 0.04% off its target $1 value. 

USDe has faced headwinds, with its market cap down 11.32% over the past month and 2.33% in the last week, highlighting the volatility risks inherent in some algorithmic and decentralized stablecoins.

Related: USDC Reserves Activated: Could This Be the Last Market Shakeout?

Similarly, MakerDAO’s Dai (DAI) is trading just 0.03% off its peg. Its supply increased 1.32% weekly but fell 4.75% over the month. In contrast, Sky Dollar (USDS) maintained its peg but saw mixed results: supply up 0.44% daily and 1.84% weekly, but down a sharp 17.57% monthly, hinting at shifts in its usage or liquidity pools.