Altcoins crumble as $8B wiped out – But THIS stablecoin shakeup stings more

Key Takeaways

Why did altcoins see a pointy decline in Open Curiosity?

Altcoin Open Curiosity dropped by $8 billion as Binance stablecoin commerce quantity fell under the important thing $150B stage.

Is BTC gaining power whereas altcoins wrestle?

Sure, BTC dominance is rising as merchants shift away from riskier altcoins amid heavy liquidations and stablecoin market adjustments.

Binance’s stablecoin commerce quantity has slipped again to $150 billion.

This comes proper because the altcoin market took successful, with $8 billion in Open Curiosity worn out. On the similar time, Circle’s USDC [USDC] is gaining floor on Tether [USDT], including rigidity to the story.

A shift in altcoin momentum

Stablecoin Pair Commerce Quantity on Binance fell back to $150 billion, down from its July 2025 peak above $203 billion.

Patterns present that when volumes rise above this threshold, Ethereum [ETH] and the broader altcoin market have a tendency to learn. As soon as volumes slip under that line, efficiency weakens.

Supply: CryptoQuant

In the meantime, USDC has grown from 5% at first of the yr to 13.58%, whereas USDT’s dominance has slipped from 69.2% to round 63%.

FDUSD now accounts for 23.3%. The competitors is intensifying, with stablecoin flows more and more shaping liquidity and worth motion throughout altcoins.

Altcoins take a heavier hit

Altcoin Open Curiosity dropped by $8 billion, a wipeout greater than 5 occasions higher than Bitcoin’s [BTC] $1.5 billion decline. This contraction signifies that altcoins unwound at a a lot quicker tempo than in BTC.

Supply: X

The hole between Bitcoin and the remainder of the market narrowed as alt merchants bore the brunt of liquidations. This confirmed weaker conviction in riskier property in comparison with the relative stability of Bitcoin.

However BTC is regaining floor

BTC Dominance rose to 58.56% at press time, displaying a gradual climb from the mid-month low close to 57%.

This restoration got here even because the Altcoin Season Index held excessive at 68, an indication of a transparent disconnect. Merchants favored Bitcoin’s relative power, whereas alts confronted sharper unwinds.

Supply: TradingView

With dominance climbing and altcoin Open Curiosity falling by $8 billion, threat urge for food shifted again towards Bitcoin. That left alts extra uncovered within the close to time period.