Tether’s USDT Reaches 330 Million On-Chain Wallets by Q3 2024
As of the end of Q3 2024, Tether’s USDT stablecoin has reached a record of 330 million on-chain wallets, establishing it as the market leader among stablecoins. This growth reflects increasing acceptability, especially among small holders, driven by its use in savings, remittances, and transactions.
Unprecedented USDT Growth Among Small Holders
Tether's latest data indicates that the number of wallets holding USDT has risen by 71% within one year, primarily due to wallets with balances under $1,000. Approximately 18.7 million wallets hold less than $1 of USDT, highlighting its utility for low-resource individuals. About 30% of these smaller wallets are regularly reactivated, indicating continued use when funds are available.
This increase in wallet numbers is linked to various factors, including the aftermath of the FTX crash, which led users to manage assets independently rather than relying on centralized systems. This trend demonstrates growing trust in USDT as a secure option amid market volatility.
Dominance Over Competitors
USDT boasts over 109 million active on-chain wallets, surpassing Bitcoin and nearing Ethereum's count. It comprises 97.5% of the overall stablecoin supply, significantly outperforming competitors like USDC and DAI. USDT is stored in four times more wallets than all other stablecoins combined, reinforcing its position as the leading stablecoin globally.
Emerging markets contribute significantly to this growth. Nearly half of the web traffic to centralized exchanges originates from these regions, where USDT is commonly used for money remittances and daily transactions. This situation illustrates how USDT provides a reliable solution for saving and conducting payments without traditional banking access.
A Resource For Financial Inclusion
The rise of USDT signifies a broader trend toward financial inclusion. With 59% of the global population earning less than $10 per day, stablecoins like USDT are becoming increasingly crucial for many.
Featured image from DALL-E, chart from TradingView