Tether's USDT Dominance Tests 4.0% Support Amid Bearish Trends

Tether's USDT dominance is currently under scrutiny as it tests a critical support level at 4.0%. This horizontal support zone, which has been tested multiple times since early 2022, has historically served as a pivotal point for market momentum. The weekly chart reveals a series of progressively lower highs since late 2023, indicating a weakening bullish grip on stablecoin dominance.

The descending trendline from mid-2023 to mid-2025 further emphasizes this bearish pressure, with each lower high failing to breach the 6.0% level. The amplitude of bounces has reduced, suggesting fading stablecoin dominance strength. Volume analysis shows consistent selling activity during each rejection phase, and the pattern appears compressed, with limited room for additional consolidation within the wedge formation.

Analysts are closely monitoring the 4.0% support level, as a confirmed weekly close below this point could invalidate the support structure in place since 2022. The absence of higher lows and weakening bounce reactions add weight to the bearish pressure. However, despite these bearish trends, USDT maintains strong utility, processing over $1 trillion in on-chain volume per month. This milestone, verified by Tether CEO, underscores USDT's position as a provider of global liquidity in the crypto market and its core role in digital finance infrastructure and crypto settlement layers.

Despite the bearish dominance trends, USDT's utility remains robust, with over $1 trillion in monthly on-chain transfer volume. This usage has surged significantly since 2020, making USDT the most transacted digital asset across blockchains. The stablecoin's success is a testament to its role as a provider of global liquidity in the crypto market, regardless of dynamic market circumstances.