Coin Metrics study links USDC growth to crypto returns and USDT growth to lending yields

A Coin Metrics study analyzing four years of data finds that stronger crypto market returns are associated with slower USDC growth the following week, while faster USDT growth correlates with higher crypto returns. The research also identifies a specific link between USDC supply growth and the yield spread between Aave v3 and Treasury rates, suggesting USDC demand is influenced by lending markets rather than purely by trading activity.