Altcoins at risk as USDT dominance nears 4.8% – Why this is good news

But with $2.7B flooding into yield-bearing stablecoins, a major altcoin rebound could be next.

USDT dominance is expected to climb, potentially triggering a short-term altcoin correction similar to April 2025. However, rising stablecoin demand and support could cause strong altcoin rebound.

The market could face some turbulence in the coming weeks, as analysts expect Tether [USDT] dominance to rise to a level that last triggered a sharp altcoin correction in April 2025.

This move is often seen as a flight to safety, draining liquidity from riskier assets like However, the stablecoin story isn’t just about caution. Ethena’s [ENA] USDe has added $2.7 billion in supply, amid heavy support for the sector.

Once USDT dominance peaks, that sidelined liquidity could rotate back into altcoins, opening the door for a strong rebound..