Shallows Records as On-chain Transfers Hit $4.4 Trillion, Dominating Over 70% of Stablecoin Wallets

Tether’s USDT has once again demonstrated its undisputed dominance in the digital asset ecosystem, closing out the final quarter of 2025 with a series of historic milestones. According to the latest Q4 2025 market report, USDT’s market capitalization climbed to a staggering $187.3 billion, an increase of $12.4 billion within just three months. This growth is particularly noteworthy as it occurred during a period when the broader cryptocurrency market faced significant headwinds, following a massive liquidation event in October that saw total market valuation drop by over one-third.

The resilience of USDT is highlighted by its massive user adoption. For the eighth consecutive quarter, Tether added more than 30 million new users, bringing its total estimated user base to 534.5 million. On-chain data further reinforces this trend, with the number of unique holders increasing by a record 14.7 million to reach 139.1 million wallets. This means that USDT is now held in over 70% of all stablecoin-related wallets globally, a clear indicator of its role as the preferred medium for both traders and everyday users.

Activity on the blockchain reached unprecedented heights during this period. The total value transferred on-chain surged to $4.4 trillion, the highest level ever recorded in the history of the asset. Interestingly, the report noted that the majority of the 2.2 billion transfers were transactions under $1,000. This suggests that USDT is moving beyond its traditional role as a tool for exchange liquidity and is increasingly being used for micro-transactions, remittances, and daily payments, especially in emerging markets.

On the financial front, Tether’s balance sheet remains robust with total reserves reaching $192.9 billion. The company has significantly increased its exposure to U.S. Treasuries, which now stand at $141.6 billion. This position would rank Tether as the 18th largest sovereign holder of U.S. debt in the world, surpassing several major nations. Furthermore, the reserves are diversified with 96,184 BTC and 127.5 metric tons of gold. Tether CEO Paolo Ardoino attributed this growth to the increasing demand for a stable store of value that operates independently of the volatile fluctuations of traditional crypto-assets. Despite the "crypto winter" sentiment following the October crash, USDT managed to expand its footprint by 3.5%, proving that its utility extends far beyond the speculative trading floor.

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