A rise or fall in USDT dominance will likely determine whether capital remains in stablecoins or shifts into Bitcoin and altcoins.
USDT dominance is the percentage of the total cryptocurrency market value held in Tether (USDT), a stablecoin that tracks the value of the US dollar. When this number rises, it often indicates that investors are shifting their money into safer assets, rather than riskier currencies like Bitcoin and altcoins. Currently, USDT dominance is close to 5%, a level that has previously acted as an important resistance point.
USDT also holds about 60% of the total stablecoin market. This makes it the most widely used stablecoin, compared to other major competitors such as USDC. This strong position has allowed USDT to remain as the main source of liquidity during both bullish and bearish periods in the market.
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