Stablecoin issuer Tether has reported a significant increase in the number of on-chain wallets holding USDT at the beginning of the fourth quarter. According to a recent report released on December 9, there are now a total of 109 million on-chain wallets holding USDT, positioning it as one of the most widely used digital assets in the market.
This growth in wallet numbers has brought USDT closer to Ethereum levels and has far surpassed the number of wallets holding Bitcoin. The report also highlighted the integration of USDT within centralized platforms, with over 86 million accounts receiving on-chain deposits. Centralized exchanges, which play a crucial role in the crypto ecosystem, recorded a staggering 4.5 billion visits in the first three quarters of 2024.
A significant portion of these visits came from emerging markets, where users often rely on USDT for various financial activities such as saving, transacting, and navigating financial constraints. Many users within these markets conduct all their financial activities – including buying, holding, and sending USDT – directly within these centralized platforms.
The appeal of USDT lies in its accessibility, particularly among retail users. The data from wallets shows that there are 18.7 million accounts holding balances of less than $1, while another 31.5 million accounts manage balances between $1 and $1,000. This showcases USDT’s ability to cater to users with modest financial means.
Interestingly, nearly 30% of smaller wallets are periodically reactivated, indicating that USDT serves as a trusted financial tool for individuals who return to it as funds become available. Philip Gradwell, head of economics at Tether, emphasized that the prevalence of low-balance wallets is a feature that highlights USDT’s accessibility to users who may otherwise be unbanked.
On the other hand, there is a smaller but significant group of wallets – just over one million – that 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 four times. Tether currently commands 97.5% of the total stablecoin supply across 25 different blockchains.
The rapid growth of USDT wallets reflects the changing preferences of users, especially following events like the collapse of FTX, which drove users towards self-custody solutions. Despite market disruptions that affected rival stablecoins like USDC, USDT has maintained its global reliability and appeal.
In conclusion, the increasing number of on-chain wallets holding USDT signifies the stablecoin’s growing popularity and utility within the digital asset space. Its accessibility, widespread adoption, and reliability have solidified USDT’s position as a leading stablecoin in the market.