The world’s largest stablecoin USDT showed significant growth in the fourth quarter of 2025, despite the market crash in October.
In its quarterly report, Tether, published on Wednesday, it states that the USDT market capitalization reached a new all-time high of $187.3 billion. Over three months, this figure increased by $12.4 billion.
The report also showed a sharp increase in the user base. In the fourth quarter, USDT attracted another 35.2 million users. The total number of holders worldwide reached 534.5 million. This period marked the eighth consecutive quarter in which the number of users increased by more than 30 million.
The number of on-chain holders grew by 14.7 million to 139.1 million. Wallets with USDT now account for 70.7% of all stablecoin wallets. Tether also estimates that more than 100 million people hold USDT on centralized platforms. The average number of active on-chain users per month reached a new record of 24.8 million.
The company’s reserves also grew in parallel. Over the quarter, they increased by $11.7 billion to $192.9 billion. Their structure includes 96,184 BTC, 127.5 tons of gold and $141.6 billion in US Treasury bonds.
Stablecoin supply dynamics. Source: The Block Data
Despite the Market Downturn
USDT continued to grow during a period when the market as a whole was struggling. And this is not just about trading. The stablecoin is increasingly used as a simple and clear tool. It is held in accounts, used for money transfers, and for settlements. Not for risk, but the opposite.
October was tough for the crypto market. Mass liquidations, sharp moves, a nervous atmosphere. The entire fourth quarter went on in much the same way. Prices dropped significantly after that. Bitcoin is now around $70,000, a level not seen since fall 2024.
Against this backdrop, USDT behavior looks atypical. While the market was falling, the stablecoin itself kept growing.
“The liquidation wave on October 10, 2025, led to the stablecoin ecosystem growing slower than before. The total crypto market capitalization shrank by more than one-third from October 10, 2025, to February 1, 2026. During this time, USDT grew by 3.5%, while the second- and third-largest stablecoins fell by 2.6% and 57%, respectively,” the report says.
At the same time, it became clear that the company is changing its funding plans. A round of about $5 billion is now being discussed. Previously, the amount was much larger, up to $20 billion.
Why USDT Grows Even During Market Downturns
The use of USDT in recent months has shifted noticeably toward practical applications. The stablecoin is increasingly used for storing funds, transfers, and settlements, not just for trading operations.
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During sharp market moves, this becomes especially noticeable. When cryptocurrencies fall and volatility spikes, users seek not yield, but stability and liquidity. USDT in such conditions is more convenient than bank transfers and less exposed to risk than volatile assets.
Geography also plays an additional role. In regions with currency restrictions, weak banking systems, or expensive international transfers, USDT has long become a familiar financial tool. That’s why even during a general market downturn, user inflow continues.
