Tether reports steady growth despite broader crypto market contraction
Tether’s latest transparency report highlights the stablecoin issuer’s ability to expand its balance sheet and user base even as the broader cryptocurrency market struggled through a sharp downturn at the end of 2025. The data underscores USDT’s growing role as both a store of value and a transactional asset beyond speculative crypto trading.
Following the crypto liquidation cascade of Oct. 10, 2025, total crypto market capitalization fell by more than one-third by Feb. 1, 2026. Over the same period, USDT grew by 3.5%, while the second- and third-largest stablecoins declined by 2.6% and 57%, respectively, according to Tether’s on-chain analysis based on data from Chainalysis and Artemis.
Market cap expansion and reserve strength
Tether said USDT market capitalization increased by $12.4 billion in the fourth quarter of 2025, reaching $187.3 billion, with particularly strong growth in October before moderating after the market selloff. Total reserves rose by $11.7 billion during the quarter to $192.9 billion, leaving net equity of $6.3 billion.
The reserve composition continued to shift toward traditional assets. Tether’s exposure to U.S. Treasuries increased by $6.5 billion in Q4 to $141.6 billion, making it the equivalent of the world’s 18th-largest holder of U.S. government debt—ahead of Saudi Arabia and Germany if treated as a sovereign entity. Across 2025, Tether added $28.2 billion in Treasuries, ranking as the seventh-largest buyer globally, surpassing Taiwan and South Korea. Reserves also included 96,184 bitcoin and 127.5 metric tons of gold.
User growth and on-chain dominance
Tether reported that total estimated USDT users rose by 35.2 million in Q4 to 534.5 million, marking the eighth consecutive quarter with more than 30 million new users. On-chain holders increased by a record 14.7 million to 139.1 million wallets, representing 70.7% of all stablecoin-holding wallets.
Savings behavior remained a defining feature. Wallets categorized as savers or 100% savers accounted for 37.5% of USDT holders, compared with 30% across other stablecoins. USDT represented 75.1% of all stablecoin saver wallets and nearly 60% of the total value saved.
Transactions, liquidity and market share
On-chain USDT transfers reached a record $4.4 trillion in Q4, while the number of transfers rose to 2.2 billion. Despite this activity, USDT velocity averaged 28% during the quarter—far below rival stablecoins—reflecting a relatively stable user base. Spot trading volumes totaled $3.2 trillion, giving USDT a 61.5% share of global spot crypto trading.
Conclusion
Tether’s report shows USDT expanding its market cap, reserves and user base despite a steep crypto market contraction. Financial data highlights growing exposure to U.S. Treasuries and sustained net equity. User behavior indicates USDT remains the dominant stablecoin for both savings and value transfer across markets.
Read also: Tether scales back fundraising ambitions amid investor scrutiny
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