Tether (USDT) Q4 2025: Record Growth in a Volatile Market

The fourth quarter of 2025 marked Tether’s accomplishment of its most important achievements. The company reached a market capitalization of 1873 billion dollars after its value increased by 124 billion dollars during the three-month period. The crypto market suffered a major decline after the October 10 liquidation event which caused more than one-third of total market value to vanish until February 2026.

USDT maintained its position as the leading stablecoin because its market share increased by 3.5% while its competitors faced challenges. The numbers show a clear trend, users increasingly trust USDT to store wealth and move money.

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Tether Fortifies Reserves and Accelerates User Dominance

USDT reserves reached $192.9 billion which resulted in a net equity buffer of $6.3 billion. The company increased its asset backing through the acquisition of 96,184 Bitcoin and 127.5 metric tons of gold and $141.6 billion in U.S. Treasuries. USDT would establish itself as the 18th largest U.S. Treasury holder if it operated as a nation because it possesses more U.S. Treasury bonds than Germany and Saudi Arabia.

User adoption showed significant growth. Total estimated USDT users rose by 35.2 million in Q4, bringing the total to 534.5 million. The number of on-chain holders reached 139.1 million wallets which became the highest quarterly growth ever documented. Wallets holding USDT now make up 70.7% of all stablecoin wallets, reinforcing its market dominance.

Tether Dominates On-Chain Activity and Value Transfers

USDT established new records through its execution of blockchain activities. The total on-chain transfer value for the quarter achieved a record high of $4.4 trillion. USDT functioned as the primary method for value transfer, which users executed through more than 65% of all single-asset stablecoin transactions.

USDT transfers reached a total of 2.2 billion during the fourth quarter. The majority of transactions occurred at small amounts because 88% of transactions stayed below $1,000, which demonstrates actual usage for payment activities, remittance services, and routine money transfers.

USDT shows low trading speed because users keep their holdings instead of making quick transactions. About 67% of USDT supply sits in low-velocity use cases such as savings and exchanges. The system achieves stability through this mechanism. High-velocity wallets create liquidity which supports worldwide transactions.

The centralized exchanges experienced strong spot trading activity as they recorded $3.2 trillion in quarterly trading volume. USDT now accounts for 61.5% of all spot trading volume which solidifies its position as the main asset used for crypto settlements.

The fourth quarter of 2025 demonstrated that USDT functions as more than a digital currency platform. The platform serves as an international financial tool which people trust to save, trade, and move money. USDT demonstrated growth during market decline because its demand increased beyond speculation.

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