Tether Dominance Hits 6% in November – Why This Is a Worrying Signal
Tether Dominance (USDT.D) surpassed 6% and broke a long-term trendline, signaling potential market-wide corrections amid declining total stablecoin market cap.Summary
In November 2025, Tether Dominance (USDT.D), the share of USDT's market cap relative to the total crypto market cap, surpassed 6% and broke above a descending trendline intact since 2022. This technical breach, coupled with historical inverse correlation between USDT.D and total market capitalization, worries analysts, suggesting the start of a major correction or bear market.
The rise in USDT.D reflects increased investor caution, as capital is being rotated into the most liquid stablecoin instead of altcoins. Furthermore, the total stablecoin market cap fell by about $5.5 billion in November, marking the first significant decline since the 2022 bear market. This combination suggests investors are not only selling altcoins into stablecoins but also withdrawing stablecoins from the market entirely, indicating cooling inflows.
However, analyst Milk Road suggests this shift might not signal a crisis but rather that the market has less "fuel" for the rally. A contrasting report notes that stablecoins held on exchanges have increased, implying some investors are positioning themselves for year-end opportunities despite the downturn.
(Source：BeInCrypto)