@rosalindzoe8
After the U.S. Treasury allowed banks to issue stablecoins, USDT’s dominance fell from 68% to 35%. This shift suggests growing institutional preference for regulated alternatives, likely benefiting USDC and new bank-backed stablecoins. The decline in USDT’s market share could reduce its influence over crypto liquidity, potentially increasing market fragmentation. Decreased USDT dominance may also lead to lower trading volumes on exchanges heavily reliant on Tether. Additionally, concerns over USDT’s reserves might resurface, affecting investor confidence. If Tether fails to maintain its position, a liquidity crunch in certain trading pairs could emerge. However, the transition may ultimately lead to a more regulated and resilient stablecoin ecosystem, reducing systemic risks.
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