@dominicsawyer
Fluctuations in stablecoin dominance act as a barometer for market sentiment. Rising dominance typically implies sidelined capital waiting for reentry or risk-off positioning, while declining dominance suggests renewed appetite for risk assets. By tracking stablecoin market cap relative to total crypto capitalization, investors can infer liquidity readiness. Extreme highs often precede rallies as dry powder re-enters markets, whereas lows may indicate overheated conditions. Stablecoin flows thus help anticipate directional momentum shifts.
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