According to Mihir (@RhythmicAnalyst) on Twitter, stablecoins are emerging as the primary choice for cryptocurrency-based payments, directly contributing to an increased global use of the US dollar in digital transactions (source: Mihir on Twitter, May 2, 2025). For traders, this trend signals rising liquidity in stablecoin markets such as USDT and USDC, potentially reducing volatility and tightening spreads on major exchanges. The growing acceptance of stablecoins in cross-border payments and DeFi platforms further supports stablecoin trading volumes, making them a strategic asset for liquidity management and arbitrage opportunities (source: Mihir on Twitter, May 2, 2025).

According to Trader Tardigrade, the USD Dominance Index ($USD.D) has reached a resistance level and is poised to decline, suggesting the onset of Altseason. Historical data indicates that Total 2 market cap has surged by 155% and 128% during previous declines in USDT dominance, which may hint at increased trading opportunities in altcoins.