$USDT remains the largest stablecoin globally, but recent data shows a significant slowdown in net issuance, with the 60-day growth in market capitalization dropping sharply — signaling more redemptions and cautious demand among investors. This deceleration often correlates with broader crypto market cooling and may dampen momentum in assets like Bitcoin if stablecoin liquidity wanes.Major ratings agency S&P Global recently downgraded USDT’s stability assessment to the weakest tier, highlighting concerns about reserve composition and transparency. Such assessments can influence institutional sentiment, especially as regulators push for higher standards in stablecoin backing and oversight.Despite caution in issuance, USDT continues to see global adoption growth, notably in developing markets where it serves as a digital dollar alternative for payments and savings. Tether also actively cooperates with law enforcement on compliance, demonstrated by recent freezing of significant USDT holdings linked to sanctioned activity.

While USDT still dominates stablecoin markets with entrenched liquidity and real-world use, recent supply slowdown and regulatory scrutiny reflect a more cautious phase — one that could influence overall crypto market dynamics and investor confidence.

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