Tether Surpasses 500 Million Users as Growth Accelerates—But Risks and Peg Concerns Persist

Tether’s USDT has crossed a major milestone, surpassing 534 million users, even as the broader crypto market remains under pressure following a sharp contraction that began in October 2025. According to the company’s Q4 2025 USD₮ Market Report, the stablecoin added more than 35 million users in the quarter, marking the eighth consecutive quarter of adding over 30 million users. USDT Expands as a Global Store of Value Even as Crypto Market Cap Contracts The growth comes during a period of declining risk appetite. Since the October 10 liquidation cascade, the total crypto market capitalization has fallen by more than one-third (30%). Meanwhile, USDT’s supply has continued to expand modestly. Tether reported that its market capitalization rose to $187.3 billion, up $12.4 billion in Q4, even as some competing stablecoins shrank. USDT, USDC, and USDe Market Cap Performances. Source: TradingView Tether attributes the resilience to demand for savings, payments, and cross-border transfers rather than purely speculative trading. On-chain metrics cited in the report show rising wallet balances among long-term holders and record transaction volumes. However, the estimates of total users include both on-chain wallets and approximations of exchange users, making independent verification difficult. Reserve disclosures also show continued expansion. Total reserves reached $192.9 billion, including $141.6 billion in US Treasuries, a level that would place Tether among the largest Treasury holders globally if it were a country. Tether Reserves. Source: Q4 2025 Market Report The company also increased its Bitcoin holdings to 96,184 BTC and its gold reserves to 127.5 metric tons, reflecting a strategy to diversify collateral beyond cash-equivalent assets. On-chain activity continued to grow rapidly. The number of USDT holders rose to 139.1 million, while monthly active users reached 24.8 million, both record highs. Number of USDT Holders by Holder Type. Source: Tether Q4 2025 Repor...