Since November 2024, the market capitalizations of USDT and USDC have increased by $76 billion.

The stablecoin market is experiencing significant growth. Billions of dollars in new capital may lay the foundation for increased trading activity and asset appreciation.

The joint growth of USDT and USDC means that investors are preparing for further rises in the cryptocurrency market.

Billions of dollars in fiat currency are pouring in.

According to data shared by Matrixport, Tether's USDT market capitalization has risen from $120 billion before Donald Trump won the U.S. election in November 2024 to the current $165 billion.

During the same period, Circle's USDC market capitalization surged from $34 billion to $65 billion. With just two stablecoins, $76 billion in fiat has flowed into the cryptocurrency market, indicating that investor confidence is being reignited as significant political and economic events approach.

Following the continuous improvement of regulatory transparency, the growth rate of stablecoins suggests that a potential transformation trend is in its early stages. The influx of these funds has strengthened the liquidity foundation of the industry and made stablecoins a key driving force for the next phase of expansion in cryptocurrency.

The passage of the (GENIUS Act) is crucial for catalyzing this growth trajectory. The act was signed into law by President Trump on July 18 and is the first significant cryptocurrency regulatory legislation passed by Congress. The act aims to establish a clear regulatory framework for payment stablecoins. As a result, many financial companies in the U.S. are preparing to launch their own dollar-backed crypto tokens.

Circle goes public, but Tether will not.

With the regulatory framework in place and billions of dollars flowing into the industry, major stablecoin players are taking bold steps to capitalize on this opportunity.

For example, Circle, the company behind the stablecoin USDC, made headlines after its IPO in June, raising about $1.2 billion at an issue price of $31 per share. In its first quarterly earnings report after going public, its revenue and reserve income increased by 53% year-on-year, reaching $658 million, exceeding expectations.

Despite a net loss of $482 million affected by non-cash expenses related to the IPO, Circle's stock price has still surged to around $163, more than five times its issue price. The company has also announced plans to launch its Arc Layer 1 blockchain later this year to further enhance the utility of stablecoins in payments, capital markets, and foreign exchange markets.

On the other hand, its competitor stablecoin issuer Tether has no intention of going public.