Tether (USDT) reached a brand new all-time excessive in market capitalization, crossing $151 billion in Could 2025. In keeping with CoinMarketCap, the corporate issued $2.5 billion price of USDT in Could. On Could 15 alone, Tether added $1 billion to the USDT provide. Since January, the market cap has grown by $13 billion, an almost 10% improve.
Analyst Axel Adler Jr said,
“Over the past 20 days, $6 billion in cash has been injected into the market through newly issued USDT.”
This rising USDT provide provides important liquidity to the crypto market./ X
Tether now controls 62.4% of your complete stablecoin market. Over $73 billion of the USDT provide exists on the TRON blockchain, which surpasses Ethereum in distribution quantity. TRON now leads as the highest platform for USDT issuance.
USDT Dominance Drops from 6% to 4.6% in One Month
Whereas the USDT provide continues to rise, the USDT dominance (USDT.D) is dropping. As per TradingView, the USDT.D index fell from 6% in April to 4.6% in Could. The metric reveals USDT’s share of the full crypto market cap.
This decline in USDT dominance means that extra USDT is getting used to buy different crypto belongings. This contains Bitcoin, Ethereum, and numerous altcoins. Traders seem like shifting capital into threat belongings reasonably than holding it in stablecoins.
Axel Adler Jr noticed {that a} fall in Bitcoin’s dominance alongside an increase in Ethereum’s market share typically displays the sort of liquidity circulation. A part of the USDT provide is now rotating into altcoins.
TRON Hosts $73 Billion of USDT Provide, Beating Ethereum
TRON has emerged because the main blockchain for USDT distribution. Greater than $73 billion price of Tether circulates on TRON. This exceeds the USDT issued on Ethereum.
TRON’s transaction prices stay decrease than Ethereum’s, which may clarify the shift in desire. Most centralized exchanges additionally assist TRON-based USDT, making it a sensible selection for merchants and establishments.
Tether stays the most important stablecoin available in the market. Regardless of regulatory questions in previous years, its rising USDT provide continues to assist every day crypto buying and selling volumes.
Mixed USDT and USDC Dominance Declines
One other analyst, Cryptosahintas, studied each USDT dominance and USDC dominance (USDC.D). He in contrast these ratios to Bitcoin price charts. He said,
“The dominance of Tether is gradually decreasing. I expect Bitcoin to continue its upward trajectory. Liquidity is slowly shifting toward riskier assets.”
This remark hyperlinks the falling stablecoin market dominance with potential shifts in asset allocation. TradingView information confirms that each USDT.D and USDC.D have declined. These figures level to merchants changing stablecoins into cryptocurrencies.
This decline in stablecoin market share reveals {that a} bigger portion of circulating capital could now be lively in altcoins and Ethereum.
Tether Progress Didn’t Stop Bitcoin Value Drop in Q1
Tether’s rising provide doesn’t at all times result in quick market reactions. Between January and April 2025, the USDT provide rose from $137 billion to $144 billion. Nonetheless, Bitcoin’s price fell from $110,000 to beneath $75,000 throughout that very same time.
This reveals that whereas USDT provide could add liquidity to the system, different elements can have an effect on crypto costs. These embody market sentiment, macroeconomic information, and huge holder exercise.
The USDT provide stays a key indicator of potential market liquidity. The USDT dominance price, in the meantime, reveals how a lot capital is being held versus deployed into lively trades or investments.