Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Tether Dominance Hits 6% in November – Why This Is a Worrying Signal

Tether Dominance Hits 6% in November – Why This Is a Worrying Signal

BeInCryptoBeInCrypto2025/11/19 06:00
By:Nhat Hoang

In November 2025, the Tether Dominance index (USDT.D) — the share of USDT’s market cap relative to the total crypto market cap — officially surpassed 6%. It also broke above a descending trendline that had remained intact since 2022. Analysts have expressed concern as USDT.D breaks a long-term resistance level. The move often signals the

In November 2025, the Tether Dominance index (USDT.D) — the share of USDT’s market cap relative to the total crypto market cap — officially surpassed 6%. It also broke above a descending trendline that had remained intact since 2022.

Analysts have expressed concern as USDT.D breaks a long-term resistance level. The move often signals the beginning of a major correction or even an extended bear market for the entire crypto market.

How Significant Is the Rise of USDT.D in the Market Context of November?

TradingView data shows that USDT.D reached 6.1% on November 18 before pulling back to 5.9%.

Earlier in the month, this metric sat below 5%. The increase reflects heightened caution among investors. Many have rotated capital into the most liquid stablecoin instead of deploying funds to buy deeply discounted altcoins.

Tether Dominance Hits 6% in November – Why This Is a Worrying Signal image 0USDT.D vs. Total Market Cap. Source: TradingView

Historical data indicate a strong inverse correlation between USDT.D and total market capitalization. Therefore, USDT.D breaking above a trendline that has held for nearly four years may signal deeper market-wide declines ahead.

Several analysts expect USDT.D to climb toward 8% by the end of the year, implicitly suggesting that a bear market may be forming in November. This projection has merit because 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 data shows that the total stablecoin market cap fell from $309 billion at the end of October to $303.5 billion in November.

Tether Dominance Hits 6% in November – Why This Is a Worrying Signal image 1Stablecoin Market Cap. Source: DefiLlama

The stablecoin market has shed approximately $5.5 billion in less than a month. This marks the first significant decline since the 2022 bear market. The DefiLlama chart reveals that, after four years of continuous growth, the curve has flattened and is starting to turn downward.

The combination of a shrinking stablecoin market cap and a rising USDT.D suggests a broader trend. Investors appear not only to be selling altcoins into stablecoins but also withdrawing stablecoins from the market entirely.

“Expanding supply means fresh liquidity entering the system. When it flattens or reverses, it signals that the inflows powering the rally have cooled,” Milk Road said.

However, Milk Road still sees a glimmer of optimism in the current landscape. He argues that the situation does not necessarily indicate a crisis. Instead, the market is operating with less “fuel” for the first time in years, and such shifts often precede price changes.

Furthermore, a recent BeInCrypto report notes a contrasting trend. Despite the declining market cap, the amount of stablecoins held on exchanges has increased in November. This suggests that some investors view the downturn as an opportunity to position themselves for the end of the year.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Ethereum News Today: "Ethereum ETFs Attract $175M Investments as Prices Fall—Large Holders Wager on Potential Undervaluation and Rebound"

- Ethereum's price rose above $3,000 amid $175M in 2-day ETF inflows led by BlackRock and Fidelity, signaling growing institutional demand for regulated crypto exposure. - Whale wallets accumulated 3% of ETH supply at lower prices, contrasting short-term bearish technical indicators and showing historical dip-buying patterns. - Macroeconomic uncertainties including Fed rate cut expectations and government shutdown risks created mixed signals in futures markets despite ETF-driven optimism. - Analysts predic

Bitget-RWA2025/11/30 18:22
Ethereum News Today: "Ethereum ETFs Attract $175M Investments as Prices Fall—Large Holders Wager on Potential Undervaluation and Rebound"

Ethereum Updates Today: Diverging Views on Ethereum’s Value: Conventional Analysis Versus Blockchain-Based Reasoning

- Simon Kim's Ethereum Valuation Dashboard estimates the network is 57% undervalued at $3,022 vs. a $4,747 fair price using 8 blended models. - High-reliability models like Metcalfe's Law ($9,583) and DCF ($9,067) contrast with traditional metrics showing 70% overvaluation. - Institutional adoption grows as Bhutan stakes $970k ETH and migrates to Ethereum, while technical indicators test key support levels. - Kim emphasizes market sentiment and regulation outweigh metrics, as crypto-native and traditional

Bitget-RWA2025/11/30 18:22
Ethereum Updates Today: Diverging Views on Ethereum’s Value: Conventional Analysis Versus Blockchain-Based Reasoning

XRP News Today: XRP ETF Buzz Contrasts With On-Chain Slowdown—Will Institutional Interest Ignite a Surge?

- XRP faces critical juncture in December 2025 amid ETF adoption, subdued on-chain activity, and mixed price signals. - Three major XRP ETFs (XRPZ, GXRP, XRPC) attracted $164M in first-day inflows, boosting institutional credibility but not yet driving robust token usage. - Price fluctuates near $2.20-$2.24 range as analysts monitor technical levels; breakout above $2.24 could target $2.30-$2.75, while breakdown risks $1.88-$1.91. - Future depends on ETF inflows, RippleNet expansion, RLUSD adoption, and ma

Bitget-RWA2025/11/30 18:22
XRP News Today: XRP ETF Buzz Contrasts With On-Chain Slowdown—Will Institutional Interest Ignite a Surge?

XRP News Today: XRP ETF Progress Faces Challenge from Stablecoin's Leading Role in Payments

- Franklin Templeton's XRP ETF (XRPZ) and Grayscale's GXRP ETF launched on NYSE Arca, boosting XRP's price by 8% and signaling institutional acceptance of crypto assets. - XRP's price stability above $2.40-$2.50 resistance is critical for a potential rally to $3.66, while on-chain DEX activity suggests institutional liquidity buildup. - XRP faces competition from stablecoins and emerging platforms like Digitap ($TAP) and Remittix (RTX) in cross-border payments, challenging its historical dominance. - Long-

Bitget-RWA2025/11/30 18:22
XRP News Today: XRP ETF Progress Faces Challenge from Stablecoin's Leading Role in Payments