Tether is the most used stablecoin in the crypto ecosystem as users consider it an alternative to fiat.
The USDT USDT $1.00 24h volatility: 0.0% Market cap: $168.89 B Vol. 24h: $85.16 B stablecoin launched by Tether Holdings Ltc, a blockchain-based firm, has achieved massive global usage on decentralized and centralized exchanges. In a recent development, USDT clinched a new milestone, recording 330 million users by the third quarter of 2024.
Tether USDT’s Oustanding Growth
According to an announcement from the firm, this figure is comparable to the population of the United States, underling USDT’s widespread adoption. Meanwhile, the 330 million users represent on-chain account holders, which exclude users who utilize USDT on millions of centralized platforms. This figure complements its circulating supply which comes in at 119 billion per data from CoinMarketCap.
This means the real number of USDT users is even higher than the 330 million presented. USDT’s user base grew consistently each quarter as new users surpassed the previous one.
The last four quarters have shown an average rise of 9%. Q3 2024 had the highest user count, with 36.25 million users recorded. USDT’s rapid growth can be attributed to its availability across multiple blockchains, including TON, Tron, Binance Smart Chain, Polygon, and Ethereum.
Tron (TRX), Ethereum (ETH), and Binance Smart Chain are the most preferred networks for USDT transactions. However, Optimism, Arbitrum, Avalanche, Solana, and Polygon, notable Ethereum Layer 2 platforms, have experienced the fastest percentage increase in the past year.
Furthermore, the TON blockchain recently integrated USDT has recorded explosive growth, adding 3.3 million users in just six months. This represents about 1% of all USDT on-chain users, highlighting the stablecoin’s increasing adoption on the TON blockchain.
USDT as an Alternative to Fiat Currencies
In a recent Coinspeaker report, Tether’s CEO Paolo Ardoino says USDT has evolved beyond cryptocurrency to a vital digital dollar globally. Typically, USDT offers investors an alternative to investing in the crypto markets. Due to its stability, the stablecoin has emerged as a market favorite among traders for holding and trading.
Still, Ardoino explains that USDT’s function goes well beyond crypto trading. He highlighted USDT’s growing adoption in countries with economic instability like Argentina and Turkey. Residents in these regions previously resorted to black markets to acquire US dollars as a store of value. Ardoino reveals that USDT now provides them with a readily available and legal alternative.
Intriguingly, the UK High Court officially recognized Tether as a property under English law. This is the UK’s first comprehensive trial to explore cryptocurrency’s legal status, establishing an important precedent for the country’s legal framework.
Despite its outstanding growth, Tether has faced criticism for allegedly facilitating illicit activities by bad players using USDT. Critics also question whether USDT is fully backed 100% by Tether’s reserves. Tether has since taken steps to clear any doubts with consistent attestation reports. To verify its systems, the stablecoin has also gained backing from Cantor Fitzgerald, one of its institutional partners.
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