Tether (USDT) dominance (USDT.D) has been trending upward for several weeks, hovering around the 5% mark and recently testing the upper boundary near 5.8%. However, many analysts suggest that if this ascending channel is broken to the downside, it could trigger a positive shift in broader crypto markets. The reason is simple: when stablecoin dominance falls, it often indicates that investors are rotating out of stable assets and back into cryptocurrencies like Bitcoin and altcoins.
Looking at the chart, USDT.D is currently retreating from its local high and may test the lower line of its channel around the 5.2–5.1% region. A confirmed breakdown below that support would open the door for a more pronounced move into risk-on assets. In other words, should Tether’s dominance continue to decline, it might mark the beginning of another bullish phase for digital currencies. Crypto enthusiasts will be keeping a close eye on this development in the days ahead, as the fate of USDT.D could hold clues about the market’s next big move.
