Tether’s dominance within the cryptocurrency market has risen sharply, reaching its highest degree since April, underscoring the danger aversion within the broader crypto market.
Tether is the world’s largest dollar-pegged stablecoin, buying and selling at a market capitalization of $184 billion at press time. Whereas the stablecoin is broadly used to fund crypto purchases and for lending and borrowing actions, it is also a greenback equal inside the crypto market, serving as a most well-liked retailer of worth throughout turbulent occasions.
In different phrases, traders are inclined to park cash in USDT and different dollar-pegged stablecoins when the market wilts. And the crypto market has been below strain currently, with market chief bitcoin shedding 11% this month to $97,630.
Traditionally, bear markets have been marked by sharp will increase in tether dominance, as merchants search to protect capital. The onset of those bear markets usually coincides with renewed bullish momentum in USDT dominance, as mirrored by the MACD histogram’s crossover above the zero line (beneath left).
