Tether closed 2025 with strong momentum, despite an overall crypto market weakened by the October sell-off wave. Its dollar-pegged stablecoin, USDT, continued to capture user attention, fuel on-chain activity and attract capital, amid reduced risk appetite, according to new data. While competing stablecoins stagnated or retreated, USDT strengthened on most key indicators, signaling growing demand beyond just speculative trading.
In brief
- USDT gained over 30 million users in Q4, its eighth consecutive quarter of continued growth.
- On-chain activity has surged, accounting for 68% of total stablecoin usage, for a total of $4.4 trillion transferred.
- Competing stablecoins stagnated or declined after October, allowing Tether to strengthen its dominance.
- Tether's reserves reached $192.9 billion, driven by the accumulation of Treasuries and growing non-trading demand.
USDT widens gap in Q4
At the end of Q4 2025, USDT's market capitalization reached $187.3 billion, according to Tether's latest report, an increase of $12.4 billion from the previous quarter. This progression occurred despite an unfavorable context: the overall capitalization of the crypto market fell by more than a third after the massive liquidations of October 10.
User growth remained a key driver: over 30 million additional users joined USDT in Q4, bringing the total to approximately 534.5 million. Active wallets have also exploded, with 14.7 million new wallets created, for a total of 139.1 million. Today, over 70% of wallets holding stablecoins contain USDT.
Network activity has reached new heights: in Q4, there were an average of 24.8 million active wallets per month, representing approximately 68% of all stablecoin activity. Transfer volumes totaled $4.4 trillion over the quarter, for 2.2 billion on-chain transactions. Notable fact: the majority of transfers were less than $1,000, highlighting adoption geared toward daily payments rather than large speculative arbitrages.
A use that goes beyond simple trading
This change in dynamics illustrates an evolution in the uses of USDT in a more cautious environment:
- More and more users are holding USDT to hedge against local currency volatility.
- Small-amount transfers support everyday payments and cross-border shipments.
- Sustained wallet activity maintains strong liquidity across multiple blockchains.
- Less reliance on leveraged trading reduces the risk of sudden capital outflows.
Faced with these trends, USDT has strengthened its position. After the turbulence of October, the capitalization of USDC (Circle) remained stable, while that of Ethena's USDe, the third stablecoin on the market, fell by 57%. In a global context of decline, USDT has captured a growing market share.
At the same time, Tether's balance sheet has further strengthened. Total reserves climbed to $192.9 billion, up $11.7 billion from Q3. Its holdings of U.S. Treasuries reached $141.6 billion, an amount that would place Tether among the world's largest holders if it were a sovereign entity. In 2025, Tether acquired $28.2 billion in treasury bonds, becoming one of the world's largest buyers.
Despite the post-October slowdown, USDT continued to grow by 3.5% through February 2026. Tether attributes this resilience to broader demand than just trading desks. The growing adoption of USDT for everyday savings and payments supports a stable growth trajectory, even in the face of market shocks.
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