Tether’s USDT Surpasses 109M Wallets, Outpacing Bitcoin and Ethereum

As an analyst with years of experience in the crypto space, I’ve witnessed a myriad of trends and shifts, and the latest development with Tether’s USDT stablecoin is nothing short of remarkable. The fact that USDT now outpaces Bitcoin in terms of wallet adoption is a testament to its widespread acceptance and utility.

Tether’s USDT stablecoin has surpassed a notable achievement, as over 109 million individual wallets now hold it, according to Q4 2024 data. This figure outnumbers the number of Bitcoin wallets by more than double, with approximately 53.75 million Bitcoin wallets reported in the same period. Additionally, USDT is rapidly approaching Ethereum‘s wallet adoption, which currently stands at 128 million. The latest Tether report indicates that USDT has a daily volatility of 0.4%, a market cap of $138.13 billion, and a 24-hour volume of $115.96 billion, compared to Bitcoin’s 3.4% volatility, $1.92 trillion market cap, and $117.76 billion 24-hour volume.

By the close of Q3 in the year 2024, Tether Insights found that approximately 330 million wallets and accounts had been supplied with USDT. Notably, this figure does not account for numerous users who solely deal with USDT on centralized platforms, implying that the stablecoin’s overall influence is even more extensive.

USDT Adoption Surges Across Emerging Markets

Approximately 86 million accounts on centralized platforms have been supplied with on-chain USDT deposits, highlighting the crucial part that these platforms still play. Centralized exchanges drew approximately 4.5 billion visits during the initial nine months of 2024, with emerging markets making up about 46% of those visits, indicating rising adoption in areas with limited access to conventional financial services.

According to the gathered information, approximately 165 million digital wallets either currently possess or will soon be using Tether (USDT). This number encompasses about 109 million active users and an additional 56 million wallets that were previously inactive but are expected to become active again. These statistics suggest the lasting confidence in USDT as both a form of financial storage and a method of transaction.

Wallets containing minimal USDT (less than one cent) are likely to be used again, as seen by Tether’s data: 29% of such wallets have become active before and frequently reoccur for further transactions. This trend aligns with patterns observed in developing markets, where even small amounts can greatly influence financial status due to their potential recurring use.

Approximately 18.7 million digital wallets contain amounts of USDT ranging from a penny to a dollar. Although this may seem insignificant in wealthier countries, it can have substantial impact in developing regions where people often live on less than $10 daily income, as reported by the World Bank. This demonstrates how stablecoins play a role in promoting financial accessibility for those who might otherwise be excluded.

Approximately 31.5 million digital wallets contain amounts ranging from $1 to $1,000 worth of USDT (Tether). It seems that many users are using this as a saving method rather than just for transactions, as they are keeping their funds longer and reducing the number of transactions. This change in usage pattern suggests that stablecoins like USDT may be serving not only for payments, but also as a means for savings.

USDT Maintains Its Lead Over Competing Stablecoins

The supremacy of Tether in the stablecoin market sector remains uncontested. On November 1st, over 54 million digital wallets held at least a penny’s worth of USDT. In contrast, all other stablecoins together had only 13.8 million wallets. This 4:1 ratio highlights Tether’s significant influence in the market.

The significant expansion in USDT digital wallets is noteworthy, experiencing a 71% jump over the last year and a massive 129% spike the year prior. This escalation can be attributed to a movement toward self-management of funds after the FTX crash. Users have been motivated by the desire for more control over their assets, thereby speeding up the acceptance of decentralized wallet systems.

The growth of USDT has surpassed that of its rivals. In contrast to the mere 3% increase in holders among 24 other stablecoins during the last year, USDT demonstrated significant expansion. Even as USD Coin (USDC) expanded onto Solana and Base platforms, USDT managed to keep a firm grip, accounting for more than 30% of holders on Solana alone.

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2024-12-09 23:54