In the fourth quarter of 2025, Tether’s USDT stablecoin achieved a new milestone, reaching a record market capitalization of $187.3 billion, even as the broader cryptocurrency market faced significant downward pressure following a major mid-quarter liquidation event. This expansion marked a substantial quarterly increase of roughly $12.4 billion, underscoring the continued demand for stablecoin liquidity during periods of heightened market stress.

According to Tether’s latest quarterly data, USDT’s market share expanded as many rival stablecoins either stalled or contracted in the same period. For example, some competing assets saw little growth or significant declines in market cap throughout Q4, illustrating USDT’s relative resilience in a challenging environment. Alongside this market cap surge, on-chain activity for USDT also climbed to record levels, as measured by wallet usage and transfer volume.

Metrics show the average number of monthly active wallets holding USDT climbed to approximately 24.8 million, capturing nearly 70% of all stablecoin wallet activity. Meanwhile, quarterly on-chain transfer volume reached around $4.4 trillion, and the total number of on-chain transfers surpassed 2.2 billion transactions. These figures reflect strong engagement among users for various uses of the stablecoin—ranging from trading and liquidity provision to payments and decentralized finance participation.

Tether also reported solid growth in its reserves during Q4, with total assets backing USDT increasing to about $192.9 billion. This rise in reserves was driven in part by additional holdings of U.S. Treasuries and other assets, which left the company with a reported net equity position that remained positive. Such reserve expansion plays a key role in Tether’s financial positioning and supports ongoing liquidity demands in the wider crypto ecosystem.

User adoption continued to grow markedly in the quarter. Estimates suggest that USDT added over 35 million new users in Q4 2025, bringing its global estimated user base to more than 530 million. This growth marked the eighth consecutive quarter in which USDT’s user count rose by more than 30 million, highlighting ongoing global adoption even amid broader market headwinds. The increase in wallets holding USDT also reached record levels, pointing to wider distribution of the stablecoin across on-chain participants.

These developments occurred against a backdrop of sustained volatility in crypto markets. While major cryptocurrencies experienced downturns following liquidity shocks, stablecoins like USDT served as a store of value and medium of exchange, offering market participants a lower-volatility option for capital preservation and trading. The combination of robust reserve growth, rising on-chain engagement, and strong user adoption suggests that USDT remains a central pillar of crypto market infrastructure.