As we reach the end of the third quarter of 2024, Tether’s USDT stablecoin has achieved a remarkable milestone by accumulating 330 million on-chain wallets. This achievement not only underscores USDT’s leading position in the stablecoin market but also highlights its increasing acceptance, particularly among small holders. The growing popularity of stablecoins is attributed to their versatile use in various financial transactions, ranging from savings to remittances and everyday transactions.
Unprecedented USDT Growth Among Small Holders
According to Tether’s most recent data, the number of wallets containing USDT has surged by an impressive 71% over the past year. This surge is predominantly fueled by wallets with balances under $1,000, indicating that everyday consumers are gravitating towards the stablecoin due to its convenience and reliability.
Significantly, approximately 18.7 million wallets hold less than $1 worth of USDT, showcasing its practicality as a financial tool for individuals with limited resources. Tether’s data further reveals that about 30% of these smaller wallets are reactivated regularly, suggesting that users continue to engage with the coin whenever their funds allow.
The remarkable increase in wallet numbers can be attributed to various factors, including the aftermath of the FTX crash. This incident prompted many users to opt for self-management of their assets instead of relying on centralized systems. This shift signifies a growing confidence in USDT as a stable and secure option amidst market volatility.
Dominance Over Competitors
With over 109 million active on-chain wallets, USDT has not only surpassed Bitcoin but is also catching up with Ethereum’s wallet count. Tether’s stablecoin commands 97.5% of the overall stablecoin supply, significantly outpacing competitors such as USDC and DAI. The report highlights that USDT is stored in four times more wallets compared to all other stablecoins combined, solidifying its status as the world’s leading stablecoin.
Emerging markets play a crucial role in this growth narrative. Nearly half of the web traffic directed to centralized exchanges originates from these regions, where USDT is predominantly used for money remittances and daily transactions. This scenario exemplifies how USDT bridges the gap between individuals and traditional banking systems, providing a reliable solution for saving funds and conducting payments without the need for bank access.
A Resource for Financial Inclusion
The rise of USDT is more than just a statistical achievement; it represents a broader shift towards financial inclusion. With 59% of the global population earning less than $10 per day, stablecoins like USDT are becoming increasingly vital for many. This trend underscores the potential of stablecoins to empower individuals by offering financial tools that are accessible and dependable.
