Tether USDT Wallets Surge to 109 Million, Surpassing Bitcoin and Ethereum Users
Tether, the stablecoin issuer, has recently reported a significant milestone in the digital asset space. The number of on-chain wallets holding USDT has skyrocketed to an impressive 109 million at the beginning of the fourth quarter, marking a substantial increase in user adoption and utilization. This surge has positioned USDT as one of the most widely used digital assets, challenging the user bases of popular cryptocurrencies like Bitcoin and Ethereum.
Retail Users Lead the Surge
The surge in USDT wallets has been primarily driven by retail users, highlighting the stablecoin’s accessibility and dominance in the crypto market. According to recent data, a significant portion of USDT wallet holders consists of retail users, with over 18.7 million accounts holding balances of less than $1 and another 31.5 million managing holdings between $1 and $1,000. These figures underscore USDT’s ability to cater to users with varying financial means, making it an attractive option for individuals looking to engage in digital asset transactions.
Interestingly, a substantial number of smaller wallets with low balances are being periodically reactivated, indicating USDT’s role as a trusted financial tool for users returning to the platform as funds become available. Philip Gradwell, head of economics at Tether, emphasized that the prevalence of low-balance wallets is a deliberate feature designed to enhance accessibility for users who may not have access to traditional banking services.
USDT’s Market Dominance and Global Appeal
In comparison to other stablecoins, USDT continues to maintain its dominance in the market, with its on-chain wallet count surpassing competitors by a significant margin. Tether currently commands 97.5% of the total stablecoin supply across 25 different blockchains, solidifying its position as a leading player in the digital asset ecosystem.
The rapid expansion of USDT wallets reflects the evolving preferences of users, particularly in the wake of market disruptions and events that have impacted other stablecoins. Despite challenges faced by rival cryptocurrencies like USDC, USDT has demonstrated resilience and reliability, reinforcing its global appeal among users seeking stability and security in their digital asset transactions.
