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.

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.