Tether’s stablecoin reported holding USDT in 109,000,000 on-chain wallets at the beginning of fourth quarter. This was according to an article published Dec. 9.
USDT has grown to become one of most widely used digital assets. Its wallet numbers are approaching those of Ethereum and surpassing Bitcoin by a wide margin.
The report also highlighted USDT’s integration within centralized platforms, where over 86 million accounts have received on-chain deposits. In the first quarter of 2024, centralized exchanges, which are an important part of the cryptocurrency ecosystem, had 4.5 billion visitors.
Nearly half these visits were from emerging markets where USDT is frequently used for savings, transactions, and to navigate financial restrictions. In many cases, users conduct all activities — buying, holding, and sending — directly within these platforms.
Retail users drive adoption
According to the report, USDT’s appeal lies in its accessibility, particularly among retail users. Data from wallets shows that 18,7 million accounts manage balances below $1, and another 31.5 millions have between $1-$1,000. These figures highlight USDT’s ability to serve users with modest financial means.
Interestingly, nearly 30% of smaller wallets are reactivated periodically, signaling the stablecoin’s role as a trusted financial tool for individuals returning to it as funds become available.
Philip Gradwell is the head of Tether’s economics.
“The prevalence of low-balance wallets is a feature, not a bug, highlighting USDT’s accessibility to users who might otherwise be unbanked.”
Meanwhile, a smaller but significant group of wallets — just over one million — hold balances exceeding $1,000, with the majority managing amounts between $1,000 and $10,000.
USDT remains the dominant stablecoin. Tether’s wallets are on chain more than four times as many as its competitors. Tether controls 97.5% the stablecoin total across 25 chains.
USDT wallets have grown rapidly, indicating a shift in user preference, especially after events such as the FTX failure, which prompted users to seek out self-custody options. USDT maintained its appeal and reliability even during the market disruptions which affected USDC.
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