Tether Holdings' USDT, a leading stablecoin in the cryptocurrency market, has reached an impressive milestone, boasting a user base of 330 million by the third quarter of 2024. This achievement reflects the growing acceptance and utilization of USDT across both decentralized and centralized exchanges, positioning it as a critical asset in the crypto ecosystem.
The announcement from Tether highlights that the number of USDT users is comparable to the population of the United States, underscoring its widespread adoption globally. It’s important to note that the 330 million figure accounts for on-chain wallet holders, excluding those who utilize USDT on various centralized platforms. Given that the circulating supply of USDT stands at approximately 119 billion, the actual number of users is likely much higher.
The user base of USDT has shown consistent growth, averaging a 9% increase each quarter. The third quarter of 2024 recorded the highest count yet, with 36.25 million new users added. This rapid growth can be attributed to USDT's availability on multiple blockchains, including Tron, Ethereum, Binance Smart Chain, Polygon, and the newly integrated TON blockchain.
Tron (TRX), Ethereum (ETH), and Binance Smart Chain are currently the preferred networks for USDT transactions. However, emerging platforms like Optimism, Arbitrum, Avalanche, Solana, and Polygon—prominent Ethereum Layer 2 solutions—have reported the fastest percentage increase in USDT usage over the past year.
Notably, the TON blockchain has seen explosive growth after integrating USDT, adding 3.3 million users in just six months, which accounts for about 1% of all on-chain USDT users. This surge indicates a growing trend toward the adoption of stablecoins on newer blockchain networks.
Tether’s CEO, Paolo Ardoino, emphasizes that USDT has transcended its role as merely a cryptocurrency and is becoming a vital digital dollar on a global scale. USDT offers investors a stable alternative for trading within the cryptocurrency markets. Its stability makes it a favorite among traders for holding assets during periods of market volatility.
Ardoino also highlights USDT’s increasing adoption in economically unstable regions like Argentina and Turkey. In these countries, residents have previously relied on black markets to obtain US dollars as a safe store of value. USDT now provides a legal and readily available alternative for individuals seeking to safeguard their wealth.
The legal status of USDT has also evolved, with the UK High Court officially recognizing Tether as property under English law. This landmark ruling represents the first comprehensive legal examination of cryptocurrency in the UK, establishing an important precedent for the future legal framework governing digital assets.
Despite its outstanding growth, Tether faces scrutiny over its role in facilitating illicit activities and concerns regarding whether USDT is fully backed by Tether’s reserves. In response to these criticisms, Tether has committed to transparency by releasing regular attestation reports. Furthermore, Tether has gained the backing of Cantor Fitzgerald, one of its institutional partners, to validate its systems and operations.
The milestone of 330 million users signifies a transformative period for Tether’s USDT and the broader cryptocurrency market. As USDT continues to grow in popularity, especially as a stable alternative to fiat currencies, it is poised to play an even more significant role in the future of decentralized finance. The ongoing developments surrounding Tether's legal standing and its commitment to transparency will be crucial in shaping the stablecoin's future in the evolving financial landscape.
October 2024, Cryptoniteuae