Tether Reveals How Small Wallets Are Fueling USDT’s Growth

Tether, the company behind the widely-used stablecoin USDT, attributes its impressive growth to small-scale holders, rather than large investors.

In a recent report, the firm emphasizes the rapid increase in USDT adoption among users with modest crypto holdings. Over the past year, wallets containing less than $1,000 have been the primary drivers of a 71% growth in USDT wallets, with a 129% increase reported the previous year.

This trend gained significant momentum following the FTX collapse, as many users opted for self-custody of their funds instead of relying on centralized exchanges.

USDT has retained its dominance even amid challenges faced by competitors, such as the de-pegging of USDC and DAI during the Silicon Valley Bank crisis. Tether notes this resilience has further cemented USDT’s reputation as the go-to stablecoin for global users.

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Tether also highlights how the widespread use of small-balance wallets underscores USDT’s practical appeal. These wallets demonstrate the stablecoin’s accessibility for users with limited banking options, providing a vital financial alternative.

Additionally, a 29% reactivation rate for these wallets indicates that many users return to holding USDT when they have available funds, reinforcing its role as a reliable tool for those outside traditional banking systems.

With a market cap of $1.38 billion, USDT continues to lead the stablecoin market, reflecting its sustained popularity and utility.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.