Stablecoin issuer Tether recently released a report indicating that there are 109 million on-chain wallets holding USDT at the beginning of the fourth quarter. This growth solidifies USDT’s position as one of the most widely used digital assets, with wallet numbers approaching Ethereum levels and surpassing those of Bitcoin.
The report also highlights the integration of USDT within centralized platforms, where over 86 million accounts have received on-chain deposits. Centralized exchanges, which are crucial to the crypto ecosystem, recorded 4.5 billion visits in the first three quarters of 2024. Nearly half of these visits came from emerging markets, where users heavily rely on USDT for various financial activities.
Retail users are a driving force behind the adoption of USDT, as the stablecoin’s accessibility appeals to users with modest financial means. Wallet data reveals that 18.7 million accounts hold balances of less than $1, while another 31.5 million manage holdings between $1 and $1,000. The report also notes that nearly 30% of smaller wallets are periodically reactivated, showcasing USDT’s role as a trusted financial tool for individuals.
Philip Gradwell, head of economics at Tether, emphasized the importance of USDT’s accessibility, stating that the prevalence of low-balance wallets highlights its ability to serve users who may otherwise be unbanked. Additionally, over one million wallets hold balances exceeding $1,000, with the majority managing amounts between $1,000 and $10,000.
Compared to other stablecoins, USDT continues to dominate the market, with its on-chain wallet count surpassing competitors by nearly 4x. Tether commands 97.5% of the total stablecoin supply across 25 blockchains, showcasing its global reliability and appeal.
The rapid expansion of USDT wallets reflects changing user preferences, especially after events like the FTX collapse that pushed users towards self-custody solutions. Even during market disruptions affecting rival stablecoins like USDC, USDT has maintained its position as a trusted and reliable digital asset.
Overall, the growth of USDT wallets signifies the increasing popularity and acceptance of stablecoins in the crypto market, with Tether leading the way in terms of accessibility and adoption.