Tether Attributes USDT Growth to Small-Scale Users Over Large Whales

Instead of institutional giants, the issuer of USDT, the most popular stablecoin in the world, attributes its impressive rise to smaller investors. The business that created USDT provided insights into the stablecoin’s increasing popularity, especially among those with small holdings, in a recent Tether Insights article.

Rapid Growth Among Small Wallets

According to Tether, USDT wallets have increased significantly, rising 71% in the last year and 129% in the year before. The report claims that wallets holding less than $1,000 in USDT have been the main driver of this growth. Following FTX’s demise, users chose self-custody alternatives over centralized systems, which accelerated the trend.

Highlighting USDT’s dominance, the publication stated: “USDT’s momentum continued even after competitors like USDC and DAI de-pegged during the Silicon Valley Bank collapse, reinforcing its position as the stablecoin of choice for users worldwide.”

Tether emphasized that smaller wallet sizes are not a drawback but a testament to USDT’s accessibility. The stablecoin has proven to be a practical financial tool, especially for users lacking access to traditional banking services.

“The prevalence of low-balance wallets is a feature, not a bug, highlighting USDT’s accessibility to users who might otherwise be unbanked. Moreover, the 29% reactivation rate of these wallets demonstrates that many users return to holding USDT whenever they have the funds, underscoring its reliability as a financial tool for those with limited access to traditional banking,” Tether explained.

With a current market cap of $1.38 billion, USDT continues to cement its role as a reliable choice for both casual users and businesses.