Why is USDT Supply Increasing But Dominance Decreasing?

The crypto market is once again in the spotlight, with Tether’s USDT taking center stage.

The surge in stablecoin supply coupled with a shift in investor funds is showing early signs of a potential significant price increase.

Is this a sign that the next bullish wave is just around the corner?

Impressive USDT Supply Increase

Based on the information we quoted from the Beincrypto media, in May 2025, Tether issued USDT worth US$2.5 billion, pushing its market capitalization to US$151 billion.

Throughout this year, USDT’s market value has increased by US$13 billion, up nearly 10%.

This growth reflects the increasingly strong purchasing power in the crypto ecosystem, indicating increasing investor enthusiasm.

USDT’s Market Dominance Shrinks

USDT’s (USDT.D) dominance decreased from 6% to 4.6% throughout May.

This shows that investors are starting to shift funds from stablecoins to other crypto assets such as Ethereum and various altcoins, in the hope of reaping greater profits from market movements.

Impact on Crypto Market Trends

Analysts believe that the flow of funds from stablecoins to high-risk crypto assets could be a catalyst for a broader market rally.

With USDT supply growing and its dominance declining, the crypto market appears to be warming up for the next bullish phase.