Analysts say there are parallels with the 2018 bear market, with capital rotating in favor of BTC since December 2021 — and dominance continuing to grow.
"Since the DeFi summer started in October 2020, the total value locked in DeFi exploded higher — growing 23.6x over two years, expanding from just $10.7 billion to over $253 billion. However, over the last seven months, a great majority of this TVL has deleveraged and unwound, falling by a remarkable 71.5%, and shedding $181 billion in value."
But over this period, Tether's seen its circulating supply decline by $17 billion as large-scale redemptions take place, with USD Coin's supplies surging by $7.3 billion. Analysts believe this could signal that a shift in market preference is underway.