Over the past seven days, the share of USDT from Tether in the crypto market has fallen by 8.4%, such a sharp decline is considered by many traders as a bullish signal for altcoins.
Analysts explained that when the dominance of USDT declines, it usually means that investors leave stablecoins and invest in risky assets such as bitcoin and altcoins in search of higher returns. The latest drop coincided with growth in the broader cryptocurrency market.
Despite the fact that there are several other stablecoins on the market, USDT is in the highest demand among its competitors, which is why most traders prefer it as a potential market indicator.
It is worth noting that the recent decline in the dominance of USDT has coincided with the growth of digital assets — bitcoin and leading altcoins have risen significantly in recent days.
The dominance of USDT will continue to decline, analysts say, which will lead to an influx of funds into other crypto ecosystems. For example, in ASTER, ENS, SPL, SOL, APEX, and ICP, which can absorb the influx of funds from the stablecoin ecosystem.