USDT Surges as Market Faces Headwinds

In the last quarter of 2025, even as the cryptocurrency market confronted a significant downturn, Tether‘s USDT displayed extraordinary growth. As outlined in Tether’s market report, USDT achieved unprecedented levels in user numbers and market capitalization. This ascent is attributed to a global inclination towards stablecoins amidst rising uncertainties, solidifying Tether’s crucial market role. Data suggests USDT’s dual utility, favored for digital transactions and also serving as a reliable store of value.

Unprecedented Spike in Market Value

According to Tether’s recently disclosed quarterly report, the market capitalization of USDT surged by a remarkable $12.4 billion, reaching an impressive $187.3 billion. This growth occurred despite facing a market shock in October. Over the quarter, the global user base saw an expansion of 35.2 million users, totaling 534.5 million. The steady increase marks the eighth quarter in a row with significant user acquisitions.

Blockchain statistics further corroborate this trend, illustrating that on-chain user numbers increased by 14.7 million to 139.1 million. Impressively, 70.7% of stablecoin wallets belonged to USDT. Tether estimates centralized exchange users holding USDT surpassed 100 million, alongside achieving a groundbreaking 24.8 million average monthly active on-chain users.

How did Tether Navigate Market Downturns?

USDT’s growth was not solely due to crypto investments. The report noted that USDT’s use as a saving mechanism and for payments was significant. The increased demand for U.S. dollars and cross-border transactions in emerging markets were pivotal in boosting its adoption.

A significant market shift was observed as massive liquidations in October 2025 led to a 33% drop in total crypto market value by February 2026. In contrast, USDT’s market valuation rose by 3.5%, while the second and third-largest stablecoins saw decreases of 2.6% and a steep 57% respectively. Bitcoin also witnessed a plummet, reaching $71,200 in early 2026.

Tether’s leadership ascribed its steady growth to an adaptable business structure that coped well with adverse market scenarios. The company adjusted its capital increase targets, setting a cautious $5 billion fundraising goal, a significant adjustment from previous high expectations of $20 billion.

“Our reserve structure backs the confidence and reliability of USDT,” affirmed Tether’s management.

This phase of growth accentuates Tether’s pivotal role in the digital asset space, marking a milestone amid financial uncertainties. Tether’s strategically managed policies and increased user reliance have fortified its market position, demonstrating resilience in challenging times.