The share of Tether’s USDT in the crypto market fell 8.4% in the past seven days, a sharp pullback that many traders view as a bullish signal for altcoins. USDT dominance dropped from 4.74% last Friday to 4.37%, according to market data.
The share of Tether’s USDT in the crypto market fell 8.4% in the past seven days, a sharp pullback that many traders view as a bullish signal for altcoins. USDT dominance dropped from 4.74% last Friday to 4.37%, according to market data.
Analysts explained that , it usually means investors are moving out of stablecoins and into risk assets like Bitcoin and altcoins, seeking higher returns. The latest drop coincided with rallies across the broader crypto market.
Although there are several other stablecoins in the crypto market, USDT stands out as the most highly demanded among the group, hence its preference as a potential market indicator for most cryptocurrency traders.
It is worth noting that the latest decline in USDT dominance coincided with a surge across the cryptocurrency market, with Bitcoin and other top cryptocurrencies experiencing notable rallies.
The analyst’s latest projection suggests further decline in the USDT dominance, translating to inflows into other crypto ecosystems. He identified several altcoins, including ASTER, ENS, SPL, SOL, APEX, and ICP, among others, as potential markets that could absorb the inflows coming from the stablecoin ecosystem.
ASTER, one of the altcoins the analyst identified, rebounded sharply from its recent downtrend. The cryptocurrency gained over 18% in less than 48 hours, reversing the dwindling fortunes of the past seven days, which caused a 37.83% decline in the digital asset’s price.
Solana (SOL), arguably the most prominent cryptocurrency among the crypto analyst’s latest list, rallied strongly over the past week, surging more than 18% in the past seven days and returning above the $200 landmark. SOL traded for $225 at the time of writing, according to data from TradingView.
