USDT dominance is forming consistent lower highs, suggesting reduced reliance on stablecoins amid increasing investor risk appetite.
The market cap of Tether has rocketed above $155 billion, indicating new liquidity pouring into the crypto market rather than lying dormant.
Weekly USDT minting continues, indicating steady capital inflow and increasing allocation toward Bitcoin and altcoins.
Tether (USDT), the world's biggest stablecoin by market cap, still displays mixed signs in leading indicators. The asset, while still strongly pegged to $1.00, with virtually no price action within the $0.9999 and $1.00 range, its dominance chart is in strong downtrend. USDT dominance has consistently formed lower highs, with the latest rejection adding to this multi-year pattern of decline.
Despite the falling dominance percentage, USDT’s market capitalization has recently surged past $155 billion. This increase indicates an influx of new liquidity into the cryptocurrency ecosystem. Notably, while USDT dominance—a metric that compares USDT's market cap to the total crypto market cap—continues to edge downward, the growing total cap suggests capital is actively being deployed into risk-on assets like Bitcoin and altcoins, rather than being held in stablecoins.
Recent lower highs in dominance could be signaling reduced demand for capital protection within the crypto space of stablecoins. Each of these rejections of the downtrending resistance trendline, clearly labeled on the chart, serves to reinforce this structural weakness in dominance. Meanwhile, buyers are steadfast in the defense of a horizontal support zone just above the 3.5% level.
On-chain metrics further confirm that new USDT is being minted weekly. This suggests increased participation or preparation for capital movement across exchanges. However, the minted supply is not translating into a growing share of total market cap, reinforcing the idea that newly minted USDT is being deployed directly into other assets.
This supply expansion aligns with observed buying activity in Bitcoin and various altcoins. If the current dominance pattern persists, and support around the 3.3% to 3.5% range holds, the market could experience continued liquidity rotation away from stablecoins. This would maintain pressure on USDT dominance to test new lows, while keeping capital active in the broader crypto space.
Support Holding as New Money Rotates into Crypto Assets
While USDT's price remains stable, its reduced market share and increased issuance paint a picture of redistribution. The interaction between declining dominance and rising total supply may define market behavior in the coming months. Support and resistance levels continue to frame the current range, with key focus on how long-term trend lines behave across Q3.
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Tether Slips as $155B Surge Fuels Crypto Liquidity Wave
USDT dominance is forming consistent lower highs, suggesting reduced reliance on stablecoins amid increasing investor risk appetite.
The market cap of Tether has rocketed above $155 billion, indicating new liquidity pouring into the crypto market rather than lying dormant.
Weekly USDT minting continues, indicating steady capital inflow and increasing allocation toward Bitcoin and altcoins.
Tether (USDT), the world's biggest stablecoin by market cap, still displays mixed signs in leading indicators. The asset, while still strongly pegged to $1.00, with virtually no price action within the $0.9999 and $1.00 range, its dominance chart is in strong downtrend. USDT dominance has consistently formed lower highs, with the latest rejection adding to this multi-year pattern of decline.
USDT Dominance Declines, Market Capitalization Climbs
Despite the falling dominance percentage, USDT’s market capitalization has recently surged past $155 billion. This increase indicates an influx of new liquidity into the cryptocurrency ecosystem. Notably, while USDT dominance—a metric that compares USDT's market cap to the total crypto market cap—continues to edge downward, the growing total cap suggests capital is actively being deployed into risk-on assets like Bitcoin and altcoins, rather than being held in stablecoins.
Recent lower highs in dominance could be signaling reduced demand for capital protection within the crypto space of stablecoins. Each of these rejections of the downtrending resistance trendline, clearly labeled on the chart, serves to reinforce this structural weakness in dominance. Meanwhile, buyers are steadfast in the defense of a horizontal support zone just above the 3.5% level.
Weekly Minting Activity Confirms Liquidity Expansion
On-chain metrics further confirm that new USDT is being minted weekly. This suggests increased participation or preparation for capital movement across exchanges. However, the minted supply is not translating into a growing share of total market cap, reinforcing the idea that newly minted USDT is being deployed directly into other assets.
This supply expansion aligns with observed buying activity in Bitcoin and various altcoins. If the current dominance pattern persists, and support around the 3.3% to 3.5% range holds, the market could experience continued liquidity rotation away from stablecoins. This would maintain pressure on USDT dominance to test new lows, while keeping capital active in the broader crypto space.
Support Holding as New Money Rotates into Crypto Assets
While USDT's price remains stable, its reduced market share and increased issuance paint a picture of redistribution. The interaction between declining dominance and rising total supply may define market behavior in the coming months. Support and resistance levels continue to frame the current range, with key focus on how long-term trend lines behave across Q3.
The post Tether Slips as $155B Surge Fuels Crypto Liquidity Wave appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.