<ul data-eligibleForWebStory="true">Tether has added over $12 billion in new supply on Ethereum in 2025, with USDT flowing to exchanges.Total stablecoin supply surged, reinforcing Tether's central role in crypto trading infrastructure.USDC reveals a decrease in netflows, indicating institutional pullback from exchanges.Traders rely more on USDT for liquidity, leading to USDC's decreasing presence.Tether now dominates with 78% of stablecoin liquidity, posing risks for smaller tokens.Imbalance in stablecoin liquidity raises concerns for market stability during stress.USDC retreat from exchanges highlights the growing importance of diversified stablecoin liquidity.Concerns emerge about liquidity concentration and reliance on Tether within the stablecoin market.Rising Tether supply and exchange presence contrast with USDC's declining netflows.USDT's $1 peg remains strong amid its significant growth in supply.Institutions pulling USDC off exchanges signal a trust shift towards Tether for liquidity.Market dynamics indicate Tether's increasing dominance and resilience despite calls for decentralization.The stability and consistency of Tether operations stand out amidst its rapid expansion.The disparity in behavior between Tether and USDC reshapes the stablecoin landscape.Concerns arise about the impact of Tether's dominance on altcoins and smaller projects.The article emphasizes the need for diversified stablecoin liquidity for ecosystem resilience.