Despite fluctuations in the cryptocurrency market, Tether’s USDT, pegged to the US Dollar, has reached a remarkable milestone by amassing over 534 million users. Founded in 2014, Tether plays a pivotal role in the crypto sector with its stablecoin, seeking stable value amidst market volatility.
Continuous Growth in User Base
According to the company’s fourth-quarter report for 2025, more than 35 million new users joined in just that period. Tether has consistently added over 30 million users per quarter for eight consecutive quarters. Despite the crypto market contraction starting in October 2025, USDT’s total supply has continued to grow.
Tether officials attribute this expansion to the users’ needs for saving, making payments, and cross-border transfers, driven by fundamental financial requirements rather than speculative transactions.
The company stated, “USDT’s resilience stems primarily from saving and transfer demands.”
The report also highlights record levels in wallet balances and transactions among long-term USDT holders. However, estimating total users is complex since both on-chain wallets and exchange users are included, making exact verification challenging.
Expansion in Financial Reserves and Market Position
Tether’s reserves have reached $192.9 billion, with $141.6 billion in US Treasury bonds. Had Tether been a country, the value of their bonds would place them among the top globally.
Furthermore, the company’s Bitcoin holdings increased to 96,184, and its gold reserves rose to 127.5 tons, emphasized as part of a strategy to diversify collateral assets.
Tether stated, “We aim to diversify the structure of our reserves to enhance security.”
In the last quarter of 2025, USDT’s on-chain daily transaction volume hit $4.4 trillion. Additionally, 61.5% of spot transactions in centralized exchanges involved USDT, consolidating its role as a primary payment tool in crypto markets.
Supply Expansion, Peg Fluctuations, and USDT’s Role in the System
At the start of 2026, Tether and competitor Circle reportedly injected approximately $3 billion of stablecoins into the market within three days. On February 4th, the analysis account Lookonchain announced Tether’s issuance of $1 billion in new USDT.
Large-scale issuances generally signal cash inflow into the market, though new tokens typically take time to circulate. As Tether’s market dominance strengthens, scrutiny and debates have intensified.
USDT’s value briefly dipped just below the $1 benchmark, hitting $0.9980, marking the lowest in five years. Experts highlight that a persistent peg disruption could lead to widespread consequences.
The rapid growth of USDT’s market cap has sparked speculation that it might become the second-largest crypto asset after Ethereum. Recent data indicates continued rises in user numbers, reserves, and transaction volumes, but a significant portion of liquidity and risk is concentrated in this single stablecoin.
