EddieJayonCrypto

 10 Dec 24

tl;dr

The firm behind USDT, Tether, states that the growth of the largest stablecoin in the crypto market has been driven by smaller investors rather than major players. Tether's publication highlights the significant increase in USDT wallets, particularly those holding less than $1,000, with a 71% growth...

"Tether Insights publication reveals extraordinary growth of USDT in crypto wallets, driven by small-balance holders. Tether asserts low-balance USDT wallets demonstrate stablecoin's reliability and accessibility for unbanked users. USDT's $1.38 billion market cap fueled by small-balance holders, reinforcing its position as the stablecoin of choice."


The firm behind USDT, Tether, states that the growth of the largest stablecoin in the crypto market has been driven by smaller investors rather than major players. Tether's publication highlights the significant increase in USDT wallets, particularly those holding less than $1,000, with a 71% growth in the past year and 129% the year before. This surge intensified after the FTX collapse, as users opted to self-custody their USDT. Tether emphasizes that the abundance of low-balance wallets demonstrates the stablecoin's accessibility and practicality, with a 29% reactivation rate showcasing its reliability as a financial tool for users with limited traditional banking access. The current market cap of USDT stands at $1.38 billion.


Source: Tether


"The firm behind USDT says that the growth of crypto’s largest stablecoin by market cap has been fueled by sharks and minnows rather than whales. In a newly released Tether Insights publication, USDT-issuer Tether highlights the 'extraordinary' growth of USDT in crypto wallets. 'The growth of USDT wallets has been extraordinary, increasing 71% in the past year and 129% the year before, driven primarily by wallets holding less than $1,000. This surge accelerated after the collapse of FTX when users chose to self-custody their USDT rather than keep it on centralized platforms. USDT’s momentum continued even after competitors like USDC and DAI de-pegged during the Silicon Valley Bank collapse, reinforcing its position as the stablecoin of choice for users worldwide.'"


Source: Tether


According to Tether, the sheer quantity of low-balance wallets holding USDT proves the stablecoin’s reliability and practical usefulness. 'The prevalence of low-balance wallets is a feature, not a bug, highlighting USDT’s accessibility to users who might otherwise be unbanked. Moreover, the 29% reactivation rate of these wallets demonstrates that many users return to holding USDT whenever they have the funds, underscoring its reliability as a financial tool for those with limited access to traditional banking.' The largest stablecoin by market cap currently boasts a $1.38 billion market cap.

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