Key insights
The rise in USDT dominance may lead to a temporary decline in altcoins, similar to the events of April 2025. However, the increasing demand for stablecoins and the support they receive could result in a strong recovery for altcoins.
Analysts are predicting a period of volatility in the market as Tether’s dominance is expected to reach levels that previously caused a significant correction in altcoins back in April 2025.
This shift is often interpreted as a move towards safety, drawing liquidity away from riskier assets like altcoins.
However, the stablecoin market is not solely about caution. The introduction of Ethena’s USDe has injected $2.7 billion into the market, indicating strong support for stablecoins.
Once USDT dominance reaches its peak, the liquidity that had been sidelined could flow back into altcoins, potentially leading to a significant rebound.
Analyst warns of potential correction
Source: Artemis
Global momentum continues to grow
While USDT dominance impacts risk appetite, the overall stablecoin market is gaining momentum.
Jamie Dimon, CEO of JPMorgan, recently acknowledged the real demand for stablecoins, contrasting them with Bitcoin.
This statement coincided with JPMorgan’s collaboration with Coinbase, enabling Chase customers to convert rewards into cryptocurrency.
“I’m a believer in stablecoin, a believer in blockchain, not personally a believer in Bitcoin itself, but you’re the customer – I don’t like to tell customers what they can and can’t do with their money.”
Furthermore, the passage of the GENIUS Act by the U.S. House has spurred regulatory initiatives in Asia, with countries like South Korea, Thailand, and the Philippines developing frameworks for fiat-pegged tokens. Companies like JD.com and Ant Group are also exploring stablecoin issuance.