Liquidity in the cryptocurrency market is growing, but it remains largely unallocated. Over the past 30 days, more than $3.65 billion has been injected into the market via USDT issuance, according to the latest analysis from CryptoQuant.

This increase in capitalization indicates a larger influx of outside capital into the crypto market, as the issuance of new USDT requires collateral from assets and commodities from the traditional financial sector. While this surge in liquidity often correlates with increased demand for digital assets, its impact is not always immediate.

A significant portion of the capital tied up in these stablecoins has yet to exert pressure on the market.

This unallocated liquidity represents untapped “firepower” that, if deployed, could quickly impact market conditions.

Institutional investors in particular can strategically position themselves through time-weighted average price (TWAP) orders or algorithmic trading, methods designed to minimize short-term price fluctuations.