USDT's market capitalization as a share of the whole crypto market. Since USDT is designed to hold one dollar, its market cap is effectively how many dollars are sitting in it. Money in a stablecoin is money inside crypto but not inside a position. That is why the number gets watched: it is the closest thing the market has to a cash balance.
Live. The figure above updates in your browser while this page is open, and the page was built with a real one in it rather than a blank.
The plain description
USDT's market capitalization as a share of the whole crypto market. Since USDT is designed to hold one dollar, its market cap is effectively how many dollars are sitting in it.
Money in a stablecoin is money inside crypto but not inside a position. That is why the number gets watched: it is the closest thing the market has to a cash balance.
Stated so you could reproduce it
USDT market cap divided by total crypto market cap, times 100. Its market cap is the supply in circulation, since the price barely moves.
The bands, and what each one actually means
| Reading | What it indicates |
|---|---|
| Rising while the market falls | The common reading is capital moving to the sidelines rather than leaving. It is also consistent with new issuance, which is a different thing. |
| Falling while the market rises | Read as stablecoins being spent into positions. Also consistent with prices rising faster than supply, which would move the ratio without anybody doing anything. |
| Rising while the market also rises | New dollars arriving. This is the version most worth paying attention to. |
The part that gets left out
- It is a ratio, so it moves when either side moves. A falling stablecoin share in a rally may be nothing but the denominator growing.
- It cannot distinguish parked capital from working capital. A large share of stablecoin supply is collateral, liquidity in trading pairs, or settlement for businesses, none of which is waiting to buy anything.
- Supply moving between chains, or between USDT and another stablecoin, shows up as a change that means nothing.