Tether's USDT has reached a significant milestone, surpassing 534 million users, even though the cryptocurrency market as a whole remains under pressure since the sharp contraction that began in October 2025.
According to the USD₮ Market Report Q4 2025 from the company, this stablecoin adds over 35 million users in that quarter, marking eight consecutive quarters with an addition of over 30 million users.
USDT Expands as a Global Store of Value Despite Shrinking Cryptocurrency Market Capitalization
This growth occurs amid declining risk appetite. Since the large liquidation on October 10, the total market capitalization of crypto assets has dropped by more than a third (30%). Meanwhile, USDT supply continues to grow, although at a moderate pace.
Tether reported that its market capitalization rose to US$187.3 billion, an increase of US$12.4 billion in Q4, even though some competing stablecoins experienced declines.
Tether attributes this resilience to the demand for savings, payments, and cross-border transfers, rather than just speculative trading activity.
On-chain metrics cited in the report indicate an increase in long-term holder wallet balances and transaction volumes reaching record highs.
However, the total user estimates include both on-chain wallets and estimated exchange users, making independent verification difficult.
The presentation of reserves also indicates ongoing expansion. Total reserves have reached US$192.9 billion, including US$141.6 billion in the form of US Treasuries, an amount that could place Tether among the largest Treasury holders in the world if considered as a country.
The company has also increased its Bitcoin holdings to 96,184 BTC and gold reserves to 127.5 metric tons, reflecting a strategy of diversifying collateral beyond cash-equivalent assets.
On-chain activity continues to rise rapidly. The number of USDT holders surged to 139.1 million, while monthly active users reached 24.8 million, both hitting record highs.
The value of on-chain transfers reached US$4.4 trillion in Q4, and USDT's share in spot trading volume on centralized exchanges rose to 61.5%. This reaffirms its role as the primary settlement asset in the crypto market.
Minting Surge, Peg Appears Shaky, and Flippening Issues Highlight the Growing Systemic Role of USDT
Recent issuance activity suggests that demand will continue into early 2026. On February 4, the blockchain analytics account Lookonchain reported that Tether minted US$1 billion USDT, part of approximately US$3 billion in stablecoins issued by Tether and Circle over three days.
Large issuances are often viewed by traders as a signal of new liquidity entering the market, although newly minted tokens do not always circulate immediately.
At the same time, Tether's increasing dominance has attracted attention. Market focus briefly turned to the stability of USDT after the token touched approximately US$0.9980, its weakest level in over 5 years.
Although the deviation was small and short-lived, any long-term decline in confidence in the USDT peg could have significant consequences, as this stablecoin plays a central role in the infrastructure of crypto asset trading.
Market estimates often state that most crypto trading volume flows through USDT pairs, making this coin a crucial pillar of liquidity.
The scale of Tether's expansion has also sparked debate about its position in the hierarchy of crypto assets. Some market observers speculate that if the current trend continues, USDT could eventually challenge Ethereum's position as the second-largest cryptocurrency by market capitalization, especially during prolonged periods when investors prefer stable assets amid risk aversion.
Meanwhile, the latest data shows that USDT continues to grow in terms of user numbers, reserves, and transaction volume, even as the overall market is contracting.
Nevertheless, this growth concentrates liquidity and systemic importance on a single instrument. The stability of Tether's exchange rate is now increasingly linked not only to one company but also to the resilience of the entire crypto asset market.