According to analysts, the stablecoin Tether USDT has reached over 78% of liquidity in the stablecoin market, resulting in a total new issuance exceeding $12 billion this year.
Growth of USDT Liquidity
Tether, the company behind the USDT stablecoin, is actively expanding its position in the stablecoin market. Based on recent data, Tether has minted over $12 billion USDT in 2025, contributing to increased liquidity in the crypto space. The new funds are not sitting idle but are actively participating in market trading, which also fuels rising demand.
Stablecoin Market Analysis
Analysis of exchange netflows shows that the newly minted USDT is significantly impacting trading activity. While USDC's netflow is negative, indicating that coins are leaving exchanges faster than they are entering, USDT shows growth. This creates favorable conditions for rallies in Bitcoin (BTC) and Ethereum (ETH), but at the same time poses challenges for other altcoins in terms of liquidity.
Risks of Tether Domination
The increasing dominance of Tether could lead to systemic risks for the market. An increase in Tether’s supply enhances market activity but also raises reliance on a single stablecoin. Meanwhile, smaller tokens in the DeFi ecosystem could face difficulties in obtaining liquidity, potentially hindering their growth.
The growing dominance of Tether in the stablecoin segment presents both benefits and risks for the market. Diversification of offerings remains crucial for the long-term growth and stability of the cryptocurrency market.
