The total market capitalization of cryptocurrencies is fast approaching its all-time high, currently standing less than 15% below the peak. During May, Tether (USDT), the primary stablecoin, displayed indications of potential buying strength.

Signs of this included Tether's consistent issuance of new USDT tokens and a considerable decrease in the USDT Dominance (USDT.D) ratio throughout the month.

This trend with USDT suggests that the ongoing crypto bull market may continue to thrive. CoinMarketCap data revealed that Tether's market cap has now hit a new record high, surpassing $151 billion.

Tether injected $1 billion USDT into the market yesterday, with a total issuance of $2.5 billion USDT in May alone. Since the start of the year, the market cap of USDT has risen by $13 billion, marking close to a 10% increase.

USDT currently comprises 62.4% of the entire stablecoin market, reinforcing its dominant position. Noteworthy is the number of USDT tokens issued on the TRON network, exceeding $73 billion and surpassing Ethereum, positioning TRON as the leading platform for USDT distribution.

The increasing market cap of USDT serves as a strong indicator of potential buying power, implying a significant amount of capital on standby to be invested in other cryptocurrencies. Despite potential price drops in the crypto market, the influx of capital facilitated by USDT could aid in a swift market recovery.

Another positive signal is the decline in the USDT Dominance index (USDT.D), which highlights a shift in investor behavior towards using USDT to purchase alternative cryptocurrencies like Ethereum (ETH) and other altcoins. This trend signifies a bullish sentiment among investors, reflecting a willingness to assume risks in pursuit of higher returns rather than sticking to safe haven assets like stablecoins.

Analyst Cryptosahintas offered further insights by analyzing both the USDC.D and USDT.D indices, anticipating a continued decline in the combined ratio, which could further bolster Bitcoin's bullish momentum in the future.

With USDT's market cap hitting record highs and USDT Dominance witnessing a downward trend, the crypto market appears poised for a potential new bull run. However, it's important to note that historical data indicates a delay in the market impact, emphasizing the challenges in predicting timing accurately and interpreting real-time market signals effectively.