In November 2025, the USDT.D index officially surpassed the 6% barrier, marking a drastic shift in Tether dominance against the rest of the crypto market. Analyst Milk Road points out that this breakout of a four-year bearish trend reflects growing caution, as investors move capital into stable assets avoiding risks.
According to TradingView data, this metric reached a peak of 6.1% on November 18 before pulling back slightly to 5.9%. Earlier in the month, the indicator was below 5%, evidencing a rapid exit from altcoin positions. On the other hand, DefiLlama figures show that the total stablecoin market cap fell from $309 billion to $303.5 billion. This reduction of $5.5 billion represents the first notable decline since the bear market recorded in 2022.
Historically, there is a strong inverse correlation between USDT.D and the total market capitalization. Therefore, the breakout of this trendline suggests that liquidity is leaving the system rather than rotating internally. Thus, market participants appear to be withdrawing their funds entirely, reducing the fuel needed to sustain current digital asset prices.
Are we facing the prelude to a deep correction?
If Tether dominance continues rising toward 8% as some experts predict, the sector could face a prolonged bearish phase. Furthermore, fear remains latent with no signs of diminishing in the short term. Milk Road argues that when the stablecoin supply stagnates, the rally cools down, which could indicate a complicated year-end for risk assets.
However, a recent report highlights that stablecoin holdings on exchanges have increased, which could imply preparation to buy the dip. Nevertheless, the current situation of the digital economy requires extreme vigilance given the lack of new capital flows. Investors must monitor whether this trend consolidates or reverses in the coming weeks to define their strategies.
