Stablecoin issuer Tether reported 109 million on-chain wallets holding USDT at the start of the fourth quarter, according to a Dec. 9 report.

The growth positions USDT as one of the most utilized digital assets, with its wallet numbers approaching Ethereum levels and far surpassing those of Bitcoin.

The report also highlighted USDT’s integration within centralized platforms, where over 86 million accounts have received on-chain deposits. Centralized exchanges, an essential part of the crypto ecosystem, recorded 4.5 billion visits in the first three quarters of 2024.

Nearly half of these visits came from emerging markets, where users frequently rely on USDT for saving, transacting, and navigating financial constraints. In many cases, users conduct all activities — buying, holding, and sending — directly within these platforms.

Retail users drive adoption

According to the report, USDT’s appeal lies in its accessibility, particularly among retail users. Wallet data shows that 18.7 million accounts hold less than $1 balances, while another 31.5 million manage holdings between $1 and $1,000. These figures highlight USDT’s ability to serve users with modest financial means.

Interestingly, nearly 30% of smaller wallets are reactivated periodically, signaling the stablecoin’s role as a trusted financial tool for individuals returning to it as funds become available.

Philip Gradwell, head of economics at Tether, said:

“The prevalence of low-balance wallets is a feature, not a bug, highlighting USDT’s accessibility to users who might otherwise be unbanked.”

Meanwhile, a smaller but significant group of wallets — just over one million — hold balances exceeding $1,000, with the majority managing amounts between $1,000 and $10,000.

Compared to other stablecoins, USDT continues to dominate. Its on-chain wallet count outpaces competitors nearly by a magnitude of 4x, with Tether commanding 97.5% of the total stablecoin supply across 25 blockchains.

The rapid expansion of USDT wallets reflects shifting user preferences, particularly after events like the FTX collapse, which pushed users toward self-custody solutions. Even during market disruptions that affected rival stablecoins like USDC, USDT has continued to maintain its global reliability and appeal.

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