Tether Dominance Hits 6% in November – Why This Is a Worrying Signal
In November 2025, the Tether Dominance index (USDT.D) — the share of USDT’s market cap relative to the overall crypto market cap — formally surpassed 6%. It additionally broke above a descending trendline that had remained intact since 2022.
Analysts have expressed concern as USDT.D breaks a long-term resistance degree. The transfer typically indicators the start of a main correction and even an prolonged bear marketplace for your entire crypto market.
How Significant Is the Rise of USDT.D in the Market Context of November?
TradingView information reveals that USDT.D reached 6.1% on November 18 earlier than pulling again to five.9%.
Earlier in the month, this metric sat beneath 5%. The enhance displays heightened warning amongst traders. Many have rotated capital into probably the most liquid stablecoin as a substitute of deploying funds to purchase deeply discounted altcoins.
Historical information point out a sturdy inverse correlation between USDT.D and whole market capitalization. Therefore, USDT.D breaking above a trendline that has held for practically 4 years might sign deeper market-wide declines forward.
Several analysts anticipate USDT.D to climb toward 8% by the tip of the yr, implicitly suggesting that a bear market may be forming in November. This projection has benefit as a result of fear continues to grow and shows no signs of easing.
In addition, the well-known analyst Milk Road highlights a notable shift in the stablecoin market. DefiLlama information reveals that the overall stablecoin market cap fell from $309 billion on the finish of October to $303.5 billion in November.
The stablecoin market has shed roughly $5.5 billion in lower than a month. This marks the primary important decline because the 2022 bear market. The DefiLlama chart reveals that, after 4 years of steady development, the curve has flattened and is beginning to flip downward.
The mixture of a shrinking stablecoin market cap and a rising USDT.D suggests a broader pattern. Investors seem not solely to be promoting altcoins into stablecoins but in addition withdrawing stablecoins from the market solely.
“Expanding provide means contemporary liquidity getting into the system. When it flattens or reverses, it indicators that the inflows powering the rally have cooled,” Milk Road said.
However, Milk Road nonetheless sees a glimmer of optimism in the present panorama. He argues that the state of affairs doesn’t essentially point out a disaster. Instead, the market is working with much less “gasoline” for the primary time in years, and such shifts typically precede worth modifications.
Furthermore, a latest BeInCrypto report notes a contrasting pattern. Despite the declining market cap, the quantity of stablecoins held on exchanges has elevated in November. This means that some traders view the downturn as an opportunity to position themselves for the tip of the yr.
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