Tether’s dominance is accelerating. On Ethereum, USDT supply growth remains strongly positive, signaling continuous new minting (+$12B YTD). Critically, USDT exchange netflows are also positive, confirming this fresh supply is being injected directly into trading venues; fueling liquidity for BTC and ETH pairs. This dual expansion cements Tether’s grip on crypto’s liquidity infrastructure.
Meanwhile, USDC tells a different story. Though its exchange reserves recently surpassed 2023 levels, this masks a strategic retreat: USDC netflows are persistently negative, indicating institutions are withdrawing coins faster than deposits arrive. This divergence, USDT flooding exchanges while USDC leaks out, creates a hidden risk: Tether now commands 78% of stablecoin liquidity, concentrating power and leaving altcoins starved for diverse stablecoin depth.
Written by Banker
