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USDT dominance chart — live, with the full cycle history

USDT dominance is Tether’s market cap as a share of the entire crypto market. It is the cleanest single gauge of how much money is sitting in cash on the sidelines versus deployed into risk. When it rises, capital is retreating to stablecoins; when it falls, that capital is rotating back into bitcoin and alts. The live chart below runs back to 2017 and updates every day.

USDT dominance · now

Source: historical series from DefiLlama (Tether supply) ÷ total market cap, spliced to and updated daily from CoinGecko. Live figure fetched on load; falls back to the last daily snapshot.

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How to read it

▲ Rising = risk-off

Money is leaving bitcoin and alts and parking in USDT. Dry powder is building on the sidelines. Rising dominance usually accompanies drawdowns — and its local peaks have often marked market bottoms, the moment of maximum cash before the rotation back.

▼ Falling = risk-on

Sidelined stablecoin capital is rotating into risk assets. Falling dominance accompanies rallies; a sharp drop from a high is the classic “cash coming off the sidelines” signal that precedes or confirms an altcoin move.

Because it is a ratio, USDT dominance moves for two reasons: Tether’s supply actually changing (mints and redemptions), and the rest of the market’s cap rising or falling around a roughly fixed stablecoin float. In a fast rally, dominance can fall even with flat USDT supply, simply because everything else went up. Read it alongside price, not instead of it.

The cycle map

The extremes are where it earns its keep. Hover the chart to read any date; the rough landmarks:

RegimeWhat USDT dominance didWhat it meant
2018–2019 bearClimbed steadily off ~0%Stablecoins became the default place to hide as alts bled out
Mar 2020 (COVID)Spiked hardEveryone fled to cash — a textbook dominance peak into the bottom
2021 bullFell to cycle lowsMaximum risk appetite; capital fully deployed into alts
2022 bear (LUNA, FTX)Rose to multi-year highsFlight to stablecoins through every leg down
2024–2026Range-bound at elevated levelsStructurally more stablecoin float in the system than any prior cycle

FAQ

What is USDT dominance?
USDT dominance is Tether’s market capitalization as a percentage of the total crypto market cap. It measures how much of all crypto value is parked in the largest stablecoin instead of being deployed into bitcoin, altcoins or other assets.
How do you read the USDT dominance chart?
Rising USDT dominance means capital is rotating into stablecoins — a risk-off signal, money sitting on the sidelines. Falling USDT dominance means that sidelined capital is rotating into bitcoin and altcoins — a risk-on signal. Traders watch it as an inverse proxy for risk appetite.
Is high USDT dominance bullish or bearish?
High or rising USDT dominance is generally bearish for crypto prices in the short term, because it means value is moving out of assets and into cash-equivalent stablecoins. Local peaks in USDT dominance have often coincided with market bottoms — the point of maximum sidelined cash before a rotation back into risk.
Where does this USDT dominance data come from?
The historical series is built from DefiLlama’s Tether circulating-supply data and total crypto market cap, back to 2017, and the current value updates daily from CoinGecko’s global endpoint. The whole series is normalized to CoinGecko’s methodology so the history and the live number are consistent.

The TT desk thoughts

USDT dominance is a sentiment gauge wearing a data costume, and its best use is contrarian: we care most about it at the extremes, not in the middle. A blow-off spike is a tell that fear is peaking and dry powder is stacked; a grind to cycle lows is a tell that everyone is already all-in and there is little sideline cash left to fuel the next leg. What has changed this cycle is the baseline — there is structurally more stablecoin float than ever, so the absolute levels from 2021 don’t map cleanly onto 2026. We read the direction and the rate of change, not the raw number. Pair it with our stablecoins thesis for why that float keeps growing.

Keep reading

Why stablecoins are crypto’s killer app · What is a TGE? · Capital flows — the coverage hub · The desk watchlist

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