The latest data from Tether, the firm behind USDT, reveals that the growth of the largest stablecoin in the crypto market has been driven by a diverse range of investors, from small retail traders to larger institutional players.
According to a recent Tether Insights publication, the number of USDT wallets has seen a remarkable 71% increase in the past year and a staggering 129% growth the year before. Interestingly, this surge has been primarily driven by wallets holding less than $1,000, showcasing the widespread adoption of USDT among individual investors.
The momentum behind USDT gained further traction following the collapse of FTX, a centralized platform, prompting users to opt for self-custody of their USDT holdings. This shift in behavior highlights the growing trend of investors seeking greater control and security over their digital assets.
Despite facing competition from stablecoins like USDC and DAI, which experienced de-pegging issues during the Silicon Valley Bank collapse, USDT has managed to solidify its position as the preferred stablecoin choice for users worldwide. The stability and reliability of USDT have been key factors driving its continued growth and acceptance within the crypto community.
Tether points out that the significant number of low-balance wallets holding USDT underscores the coin’s accessibility and utility for users who may not have access to traditional banking services. Moreover, the 29% reactivation rate of these wallets indicates that users often return to holding USDT when they have the means, highlighting the coin’s value as a financial tool for those with limited banking options.
Currently boasting a market cap of $1.38 billion, USDT continues to dominate the stablecoin market and remains a popular choice for a wide range of investors. Its resilience and practicality have cemented its reputation as a reliable asset within the ever-evolving crypto landscape.
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Image Source: Tether
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