Altcoins at risk as USDT dominance nears 4.8% – Why this is good news
Key takeaways
USDT dominance is anticipated to climb, doubtlessly triggering a short-term altcoin correction just like April 2025. Nevertheless, rising stablecoin demand and assist may trigger robust altcoin rebound.
The market may face some turbulence within the coming weeks, as analysts count on Tether [USDT] dominance to rise to a stage that final triggered a pointy altcoin correction in April 2025.
This transfer is usually seen as a flight to security, draining liquidity from riskier property like altcoins.
Nevertheless, the stablecoin story isn’t nearly warning. Ethena’s [ENA] USDe has added $2.7 billion in provide, amid heavy assist for the sector.
As soon as USDT dominance peaks, that sidelined liquidity may rotate again into altcoins, opening the door for a powerful rebound.
Analyst warns of sharp correction
Supply: Artemis
International momentum builds
As USDT dominance quickly drains risk-on urge for food, the broader stablecoin narrative continues to realize energy.
JPMorgan CEO Jamie Dimon lately acknowledged that stablecoins — not like Bitcoin — serve actual buyer demand.
His remarks got here alongside the agency’s partnership with Coinbase, permitting Chase customers to transform reward factors into crypto.
“I’m a believer in stablecoin, a believer in blockchain, not personally a believer in Bitcoin itself, however you’re the shopper – I don’t like to inform clients what they’ll and may’t do with their cash.”
In the meantime, the U.S. Home’s passage of the GENIUS Act has catalyzed related regulatory efforts throughout Asia.
Nations like South Korea, Thailand, and the Philippines are advancing frameworks for fiat-pegged tokens. Regional giants like JD.com and Ant Group are additionally exploring stablecoin issuance.
