Tether's fourth-quarter 2025 report revealed that USDT has surpassed 500 million users, with over 35 million new users joining in that period alone. The company has maintained a pace of adding more than 30 million users per quarter for eight consecutive quarters. Notably, USDT's total supply continued to grow even as the crypto market contracted starting in October 2025.
Tether attributes this expansion to fundamental financial needs — saving, payments, and cross-border transfers — rather than speculative trading. The company stated, "USDT's resilience stems primarily from saving and transfer demands." The report also noted record levels in wallet balances and transactions among long-term holders. However, estimating the exact user count is complex because it includes both on-chain wallets and exchange users, making verification difficult.
Reserve Growth and Asset Diversification
Tether's reserves reached $192.9 billion, including $141.6 billion in U.S. Treasury bonds. If Tether were a country, its Treasury holdings would rank among the top globally. The company's Bitcoin holdings rose to 96,184 BTC, and gold reserves increased to 127.5 tons. Tether emphasized that this is part of a strategy to diversify collateral assets and enhance security.
In Q4 2025, USDT's on-chain daily transaction volume hit $4.4 trillion. Moreover, USDT accounted for 61.5% of spot transactions on centralized exchanges, solidifying its role as the primary payment tool in crypto markets.
Supply Expansion and Depeg Concerns
In early 2026, Tether and competitor Circle injected approximately $3 billion in stablecoins into the market within three days. On February 4, the analysis account Lookonchain reported Tether minting $1 billion in new USDT. Large issuances typically signal cash inflows, but new tokens take time to circulate.
As Tether's market dominance strengthens, scrutiny and debate have intensified. USDT briefly dipped below the $1 peg to $0.9980, its lowest level in five years. Experts warn that a persistent depeg could trigger widespread consequences. USDT's rapid market cap growth has sparked speculation that it could become the second-largest crypto asset after Ethereum. However, a significant portion of liquidity and risk now rests on this single stablecoin.