BEARISH 📉 : USDT Hits ATH but Faces Risk of Depegging from $1

Tether Hits All-Time High in Circulating Supply

Tether's USDT reached a record market cap of $187.3 billion in Q4 2025, despite broader crypto market challenges.
Major liquidation event affected the market on October 10 due to US-China tariff war discussions.
USDC remained stable, while Ethena’s USDe saw a 57% drawdown.
Monthly active USDt wallets hit 24.8 million, making up 70% of all stablecoin wallets.
Quarterly transfer volume rose to $4.4 trillion, with 2.2 billion on-chain transfers.
Tether reserves increased to $192.9 billion by end of Q4 2025, up from $11.7 billion in the prior quarter.

Concerns Over USDT Unpegging

USDT recently dropped to $0.9980, raising concerns about potential unpegging.
A full untethering could significantly impact the crypto market due to USDT's dominance in trading volume (87%).
In Q4 2025, USDT was recognized as an Accepted Fiat-Referenced Token by Abu Dhabi Global Market, enabling multi-blockchain use.

Image: Tether Image