Tether ended 2025 with strong momentum, even as the broader crypto market weakened following October’s sharp sell-off. USDT added over 30 million users in Q4, marking its eighth straight quarter of consistent user growth. On-chain activity surged, with USDT accounting for 68% of stablecoin usage and $4.4 trillion in transfers. Rival stablecoins stalled or declined after October, allowing USDT to capture a larger share of the market.
Tether reserves climbed to $192.9 billion, driven by rising Treasury holdings and continued non-trading demand. By the end of the fourth quarter of 2025, USDT’s market capitalization reached $187.3 billion, according to Tether’s latest quarterly report. This marked a $12.4 billion increase over the prior three months. The growth came despite a market downturn that erased more than one-third of the total crypto market value after the October 10 liquidation cascade.
User adoption remained a key driver. On-chain data showed record wallet growth, with 14.7 million new holders pushing the total to 139.1 million wallets. More than 70% of all stablecoin-holding wallets now hold USDT, further extending its lead over competitors. During Q4, monthly active USDT wallets averaged 24.8 million, accounting for roughly 68% of all stablecoin activity.
Total transfer volume reached $4.4 trillion for the quarter, while on-chain transactions climbed to 2.2 billion. Most transfers were under $1,000, signaling frequent everyday use rather than large speculative movements. This pattern reflects a shift in how users are deploying USDT during weaker market conditions. Users increasingly held USDT as a hedge against local currency volatility.
Small-value transfers supported retail payments and cross-border remittances. High wallet activity sustained liquidity across multiple blockchains. Lower reliance on leverage-driven demand reduced the risk of abrupt outflows.
Comparative data underscores USDT’s growing dominance. After the October liquidation event, Circle’s USDC remained largely flat through Q4, while Ethena’s synthetic dollar USDe lost 57% of its market value over the same period. As overall demand cooled, these shifts allowed USDT to capture a larger share of the stablecoin market. Tether’s balance sheet strengthened alongside USDT’s expansion.
Total reserves rose to $192.9 billion, up $11.7 billion from Q3. Holdings of U.S. Treasuries increased to $141.6 billion—an amount that would place Tether among the world’s largest holders if it were a sovereign entity. Over the full year, the company added $28.2 billion in Treasuries, ranking among the top global buyers. Reserves also included 96,184 bitcoin and 127.5 metric tons of gold.
Leave a Reply