Tether Q4 2025 Report Highlights Massive USDT User Surge

Key Insights:

• The market cap of USDT issuer Tether reached $187.3B, growing by $12.4B in Q4 2025.
• USDT added 35.2 million new users, bringing the total to over 534 million.
• Tether’s reserves increased to $192.9B, including major holdings in BTC, gold, and U.S. Treasuries

Tether released its Q4 2025 market report this week. The numbers stand out as the USDT market cap climbed to $187.3 billion. That marks a $12.4 billion increase in just three months.

User adoption drove much of the gains, with Tether adding 35.2 million new users in Q4 of 2025.

The total estimated users now exceed 534 million worldwide. This quarter became the eighth in a row with over 30 million new users. On-chain holders grew by 14.7 million to 139.1 million as USDT wallets make up 70.7% of all stablecoin wallets.

Record User Adoption in Tether Q4 2025 Report

User adoption played a central role in the success of Tether this quarter. The stablecoin’s user base skyrocketed, with monthly active on-chain users hitting an all-time high of 24.8 million.

On-chain holders grew by 14.7 million, reaching 139.1 million. USDT wallets now account for 70.7% of all stablecoin wallets.

Tether Q4 2025 Market Report | Source. X

Tether estimates that over 100 million people hold USDT on centralized exchanges, utilizing the stablecoin for a variety of real-world applications. These include savings, payments, and cross-border transfers—use cases that explain the steady rise in adoption.

Unlike previous market cycles, speculative trading now plays a smaller role, as more users rely on USDT for its stability and functionality.

USDT Outperforms Competitors Amid Market Shock

Despite facing significant challenges in the crypto market, USDT has shown remarkable resilience. Following the October 10, 2025, liquidation event, total crypto market capitalization dropped by over 30%, leading to heightened volatility.

However, Tether managed to grow its market cap by 3.5%, even as the second-largest stablecoin fell by 2.6% and the third-largest saw a 57% drop. This performance underscores the growing user preference for USDT during turbulent times.

The quarter also saw record on-chain transfers, with $4.4 trillion in value moved on the blockchain. USDT continues to dominate centralized exchange trading, handling 61.5% of spot trading volume.

Its increasing share of trading activity highlights USDT’s critical role as a settlement asset and liquidity provider in the crypto space.

Tether Expands Reserves for USDT Stability

The reserves of the stablecoin issuer increased by $11.7 billion to $192.9 billion. The reserve mix has diversified, with major holdings now including $141.6 billion in U.S. Treasuries, 96,184 BTC, and 127.5 metric tons of physical gold.

This diverse range of assets demonstrates the commitment of Tether to back USDT with stable, tangible reserves beyond just cash-equivalent assets.

Tether’s minting activity also continues to grow, with billions of dollars worth of new USDT tokens issued in early 2026. This ongoing demand for USDT further signals its importance in the broader financial ecosystem.

Recently, USDT experienced a brief dip below its $1 peg, though the deviation was minor and short-lived. Given the significant role of Tether in the crypto market, any sustained instability in its peg could seriously affect liquidity and undermine market confidence.

At the same time, the broader crypto market is facing pressure, with Bitcoin falling below $71,000 and Ethereum dipping under $2,100 as selling intensifies. Leveraged liquidations in the market have surged, reaching nearly $800 million in just 24 hours.

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