Despite the dramatic downturn in the cryptocurrency market in October 2025, Tether’s USDT showcased an impressive growth performance during the final quarter of the year. According to the company’s market report, USDT reached historic levels both in terms of user numbers and market capitalization. The global trend of investors gravitating towards stablecoins amidst growing uncertainties further solidified Tether’s position. Data revealed that USDT was not only favored for cryptocurrency transactions but also extensively used as a store of value.
Record Growth in USDT
As revealed in Tether’s fourth-quarter report released on Wednesday, USDT’s total market capitalization surged by $12.4 billion in the last three months of 2025, soaring to $187.3 billion. This increase materialized despite the market shock experienced in October. The report indicated that the global user base expanded by 35.2 million reaching 534.5 million over the quarter, marking the eighth consecutive quarter with over 30 million new users gained.
Blockchain wallet data further illustrated the magnitude of this growth. The number of on-chain users rose by 14.7 million, totaling 139.1 million in just three months. USDT wallets comprised 70.7% of all stablecoin wallets. Tether estimated that the number of users holding USDT on centralized exchanges exceeded 100 million, while the monthly average of active on-chain users reached a record 24.8 million.
On the financial reserves side, a strong picture emerged as Tether’s total reserves rose by $11.7 billion throughout the quarter to $192.9 billion. These assets include 96,184 Bitcoin, 127.5 tons of gold, and $141.6 billion in U.S. Treasury bonds. Tether management emphasized that this reserve structure supports confidence in USDT.
Maintaining Strength Through Market Collapse
The Tether report highlighted that USDT’s growth was not solely reliant on crypto investments. The company pointed out that users have embraced USDT as both a saving tool and a payment and transfer system. Increased U.S. dollar demand and cross-border transfer needs in developing countries were cited as core factors accelerating stablecoin usage.
The massive liquidation wave experienced in October 2025 led to significant losses in the crypto market. Between October 10, 2025, and February 1, 2026, the total crypto market value declined by over 33%. During the same period, USDT’s market value recorded a 3.5% increase, while the two largest following stablecoins saw declines of 2.6% and 57%, respectively. Bitcoin’s price dropped to as low as $71,200 in early 2026, its lowest point since October 2024.
The company management attributed the stable growth to a sustainable business model despite market conditions. Furthermore, it was reported that Tether revised its capital increase targets in the year’s last quarter. A new fundraising plan introduced by advisors was set at $5 billion, marking a more cautious financial strategy compared to previous discussions that expected targets to reach $20 billion.
