According to IntoTheBlock, the total stablecoin market capitalization has exceeded $230 billion, signaling increased liquidity and trading activity in the crypto market. USDT is a significant driver of this growth, now accounting for 65.8% of the entire stablecoin sector. This dominance by USDT suggests heightened demand for dollar-pegged assets and may lead to tighter spreads and deeper liquidity on major exchanges. Traders should monitor stablecoin inflows and dominance ratios, as these metrics often precede shifts in Bitcoin and altcoin price trends (source: IntoTheBlock, May 6, 2025).

According to @rektcapital on Twitter, a bearish cross has formed on the USDT Dominance ($USDT.D) chart, which historically signals increased bullish momentum for altcoins. This technical indicator suggests that traders may see a rotation of capital from stablecoins into higher-risk altcoins, potentially driving up altcoin prices in the near term. Market participants are closely monitoring this development as it indicates a possible shift in market sentiment away from stablecoins and towards more speculative assets (source: @rektcapital on Twitter).

According to Cas Abbé on Twitter, USDT dominance has consistently peaked whenever the weekly RSI surpasses 60 since 2023, leading to significant liquidity inflows into Bitcoin and altcoins. Historical data from Q4 2023 and Q3 2024 show that these USDT dominance peaks align with the start of major market rallies, suggesting traders can monitor this indicator for potential bullish shifts in crypto assets (source: Cas Abbé, Twitter, May 3, 2025).

According to Trader Tardigrade, the USD Dominance Index ($USD.D) has reached a resistance level and is poised to decline, suggesting the onset of Altseason. Historical data indicates that Total 2 market cap has surged by 155% and 128% during previous declines in USDT dominance, which may hint at increased trading opportunities in altcoins.

According to Trader Tardigrade (@TATrader_Alan), Bitcoin may experience an upward trend as USDT dominance ($USDT.D) decreases below a resistance trendline. This movement is significant due to the inverse correlation between $BTC and $USDT.D, suggesting a potential bullish phase for Bitcoin as USDT's market dominance weakens.