TOTAL3 Market Cap Hits $1.18T as USDT Dominance Falls

• TOTAL3 hits record $1.18 trillion market cap.
• USDT dominance plunges 11.8% in one week.
• Indicates strong rotation into risk assets.

TOTAL3 Market Cap Surges to All-Time High

The TOTAL3 market cap, which measures the combined value of all cryptocurrencies excluding Bitcoin and Ethereum, has reached a new record of $1.18 trillion. This milestone highlights renewed investor confidence in altcoins and broader crypto risk assets.

At the same time, USDT dominance has dropped by 11.8% over the past week — a key signal that capital is flowing out of stablecoins and into more speculative markets. Analysts interpret this as a sign of growing appetite for risk, often seen in the early and middle stages of a bull market.

Capital Rotation from Stablecoins to Risk Assets

The decline in Tether (USDT) dominance suggests that traders and institutions are deploying sidelined liquidity into assets with higher upside potential. Historically, sharp drops in stablecoin dominance coincide with surges in altcoin prices and expanding market activity across decentralized finance (DeFi), gaming, and AI-related crypto projects.

This movement aligns with a broader narrative of capital rotation, where investors shift funds from “safe” holdings into more volatile, growth-oriented assets when market sentiment turns bullish.

Altcoin Season on the Horizon?

The rise in TOTAL3 market cap is fueling speculation about the start of a potential altcoin season. Several major projects — including Solana, Avalanche, and Chainlink — have seen double-digit gains in recent days, reflecting the momentum building across the sector.

If the trend continues, the current wave of liquidity entering the market could push TOTAL3 even higher, further confirming that risk-on behavior is back in full swing. For now, the data paints a clear picture: capital is flowing out of stablecoins and into crypto’s growth engines.