USDT liquidity concentration on Ethereum could precede altcoin rally

A shift in USDT liquidity toward the Ethereum network over Tron has raised the possibility of expanded leverage across the altcoin market. CryptoQuant contributor BorisD noted that based on the seven-day moving average of daily transfer volumes, USDT transfers on Ethereum have surged to $26.6 billion, while volume on the Tron network has remained stable. The analyst explained that a concentration of USDT liquidity on Ethereum tends to signal a market shift to a risk-on environment, leading to higher volatility. This trend increases the likelihood that capital will flow into altcoins, potentially fueling a rally.