Tether’s USDT, the premier cryptocurrency stablecoin, recently marked its 10th anniversary in the sector. The company’s progression has been remarkable, buoyed by a consistent user base, substantial holdings that encompass $97 billion in US government bonds, and its initiatives to collaborate with US law enforcement to bolster its reputation.
Now, the team at Tether has yet another reason to rejoice: recent data indicates that Tether’s USDT user growth achieved its most successful quarter in Q3, with an addition of 36.25 million new users. The company noted that its quarterly user metrics have risen by an average of 9% over the past year, providing ample momentum as it broadens its use cases and applications.
USDT price fluctuations over the last 24 hours. Source: CoinMarketCap
On-Chain Tether USDT Users Propel Growth
In a post on Tether.io, the company highlighted the rising adoption of its stablecoin, reporting more than 330 million on-chain wallets and accounts. The firm emphasized that these figures reflect users who had received the stablecoin by the end of the third quarter.
Source: Tether
This total does not encompass users who transact with the coin on centralized platforms like Binance and Coinbase, which account for several million as well. A report from October 16th suggested there are tens of millions of Tether users on these exchanges and off-chain platforms.
Tether CEO Paolo Ardoino noted that a significant portion of users hails from developing nations. He explained that the primary motivation for buying USDT is to safeguard against inflation and the instability of their local currencies.
As of today, the total market cap of cryptocurrencies reached $2.26 trillion. Chart: TradingView.com
Tether’s USDT Gains Momentum from Ethereum L2s and TON
A key factor behind Tether’s success is its integration with major blockchains such as Ethereum and the Binance Smart Chain. The company reported that layer-2 networks based on Ethereum contributed the largest number of new users this quarter. Last year, Arbitrum and Polygon were the leading sources of new users for Tether.
Source: Tether
Telegram’s The Open Network (TON) has also played a significant role in expanding Tether’s user base. Philip Gradwell from Tether reported that TON brought in 3.3 million users over six months, representing 1% of all on-chain accounts.
The Future for Tether
With millions of new users flocking to Tether, the company is exploring avenues for further growth. Reports suggest they are investigating transitions into traditional finance, particularly through lending. Additionally, the company has made investments in several startups, including Bitdeer, a cryptocurrency mining company, and Blackrock Neurotech.
However, one of the most intriguing strategies this year is centered around brand enhancement. In an interview with Fox Business, Ardoino remarked that collaborations with US law enforcement agencies are progressing positively. Should Tether enhance its public image, substantial user growth may be on the horizon in the coming quarters.
Featured image from Forkast News, chart from TradingView
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