Tether’s USDT Hits $187B in Q4 as Rivals Decline Amid Crypto Downturn
Tether's dollar-peg stablecoin USDt increased its market capitalization to $187.3 billion in the fourth quarter of 2025, despite the broader crypto market's October liquidity crisis.
According to the latest quarterly report, USDt (USDT) market cap grew by $12.4 billion in Q4.
The data shows that USDt is expanding its dominance while its competitors are retreating.
After the major liquidation event on October 10, the market price of Circle's USDC (USDC), the second-largest stablecoin, fluctuated throughout the rest of Q4, but closed the period largely unchanged. Ethena's synthetic dollar USDe (USDE), ranked third among stablecoins by CoinMarketCap, fell by 57%.
Related: Tether Releases Open Source Operating System for Bitcoin Mining
USDt recorded onchain activity records
Onchain activity has also reached a new high. The number of average monthly active USDt wallets rose to 24.8 million, representing almost 70% of all stablecoin wallets. Quarterly transaction volume rose to $4.4 trillion, while the number of onchain transfers rose to 2.2 billion.
Tether reported total reserves of $192.9 billion at the end of Q4, up $11.7 billion from the previous quarter, leaving net equity of $6.3 billion. Exposure to US Treasuries increased to $141.6 billion, making it one of the largest globally and ahead of many sovereign nations.
The data suggests a relatively stable user base. Two-thirds of the USDt supply is held by wallets and decentralized exchanges, while the remaining third supports activities related to payments, money transfers, and decentralized finance.
USDt is the most widely used stablecoin in illegal transfers. Bitrace reports that $649 billion in stablecoins, or 5.14% of the total stablecoin transaction volume, flowed through high-risk blockchain addresses in 2024, with Tron-based USDt accounting for more than 70% of the activity.
Tether has stepped up efforts to curb illicit use and has launched collaborative programs with TRM Labs and Tron to monitor and block illicit funds.
Related: Tether CEO denies company ever planned to raise $20 billion
Tether GENIUS Act – launched a stable coin that complies
In January, Tether launched USAT, a dollar-pegged stablecoin designed specifically for the US market. Issued by Anchorage Digital Bank, USAT is a stablecoin compliant with the US GENIUS Act, with an initial supply of $10 million on Ethereum.
On Monday, Tether and Opera partnered to expand digital payments in emerging markets by integrating USDt and Tether Gold (XAUT) with the Opera MiniPay wallet.
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