Definition ∞ Tether dominance refers to the proportion of the total cryptocurrency market capitalization held by Tether (USDT), the largest stablecoin. This metric indicates the relative influence and usage of USDT within the broader digital asset ecosystem. High dominance can suggest a flight to safety or increased liquidity for trading. It is a key indicator of market sentiment.
Context ∞ News in the crypto market frequently reports on Tether dominance as an indicator of market sentiment, often correlating its rise with periods of market uncertainty or capital reallocation. Discussions center on the implications of USDT’s market share for overall market stability and liquidity. A critical future development involves observing how Tether’s dominance evolves with the emergence of new stablecoins and regulatory changes.
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