The cryptocurrency market has never had as much Tether (USDT) as it does now. Therefore, the Tether Dominance Ratio (USDT.D) has become one of the most closely watched indicators among cryptocurrency investors.
USDT.D measures the dominance of USDT by comparing it to the total cryptocurrency market capitalization. A decline in USDT.D is often interpreted as a signal that investors are shifting to purchasing altcoins and Bitcoin using USDT.
BTC and USDT.D Symmetry... Bullish Outlook
According to CoinMarketCap, Tether's market capitalization reached an all-time high of $145.6 billion in April 2025, an increase of over $8.5 billion since the beginning of the year.
Tether issued and put into circulation more than $1.6 billion in April alone. If USDT's market capitalization represents the capital available in the market, USDT.D serves as an early indicator of whether that capital is beginning to flow into altcoins and Bitcoin.
Recently, USDT.D has shown signs of decline, sparking speculation about a market-wide recovery.
Max, the founder of BecauseBitcoin, highlighted the surprising symmetry between Bitcoin's price chart and the USDT Dominance Index. In a post on X, Max noted that Bitcoin tends to surge when USDT.D falls, and vice versa. At the same time, both indicators have broken through their respective support and resistance levels.
Based on historical patterns, he predicted that Bitcoin could experience another price increase next month, and USDT dominance could continue to fall at the 5.5% resistance level.
"I really think this means the collapse of USDT.D and the subsequent rise of BTC," Max said.
Stablecoin Market Share Increase... Bullish Signal
The combined index of USDT.D and USDC.D (USDC Dominance), representing the dominance ratios of the two largest stablecoins, shows early positive signals.
Investor Cryptosahintas noted that this combined index has reached an important 8% resistance level this month. This is a positive signal for altcoins. When stablecoin dominance reacts to resistance, it indicates that capital is preparing to flow into altcoins, which could trigger a strong price increase.
Additionally, Cryptosahintas predicted that this combined index could fall to 3.5% by next year.
This perspective is further supported by the current market sentiment. Investors are aware that altcoin prices have fallen significantly and are actively repurchasing. This week, the Fear and Greed Index shifted from fear to greed, confirming this psychological change.
Simultaneously, the total market capitalization recovered by 6%, rising from $2.68 trillion to $2.84 trillion.
Not all predictions about stablecoin dominance are positive. According to a recent report by 10X Research, while stablecoin issuance indicators have increased, they have not yet returned to previous peaks. Researchers at 10X Research emphasize the need for caution regarding the current market recovery.
