Stablecoins have been making waves in the cryptocurrency market, with Tether (USDT) dominance expected to climb in the coming weeks. This shift could potentially trigger a short-term correction in altcoins, similar to what was seen back in April 2025. Investors may be looking to move their funds to safer assets like stablecoins, draining liquidity from riskier altcoins.
However, the story of stablecoins goes beyond caution. Ethena’s USDe has seen a significant increase in supply, adding $2.7 billion to the market. This surge in stablecoin support could pave the way for a strong rebound in altcoins once USDT dominance peaks. The sidelined liquidity could rotate back into altcoins, providing a boost to the market.
Analysts have warned of a sharp correction in the market as USDT dominance rises, but this could be followed by a period of strong growth for altcoins. The stability and increasing demand for stablecoins like USDe suggest that the cryptocurrency market is evolving and maturing.
On a global scale, momentum for stablecoins is building. JPMorgan CEO Jamie Dimon recently expressed his belief in stablecoins, noting that they serve real customer demand. This sentiment is echoed by regulatory efforts across Asia, with countries like South Korea, Thailand, and the Philippines working on frameworks for fiat-pegged tokens. Even regional giants like JD.com and Ant Group are exploring stablecoin issuance, further solidifying the place of stablecoins in the cryptocurrency ecosystem.
Overall, the rise of stablecoins and the potential for a shift in USDT dominance could bring about both challenges and opportunities for the cryptocurrency market. Investors should stay informed and be prepared for potential market fluctuations as the landscape continues to evolve.