Tether Surpasses 500 Million Users as Growth Accelerates—But Risks and Peg Concerns Persist

Tether's stablecoin, USDT, has surpassed 534 million users, adding over 35 million in Q4 2025, demonstrating significant growth even as the overall crypto market capitalization contracted by over one-third since October 2025. Tether's market cap rose to $187.3 billion, supported by demand for savings and cross-border transfers, and its reserves expanded to $192.9 billion, including substantial holdings in U.S. Treasuries and increased Bitcoin and gold reserves. Despite this expansion, which includes record highs in monthly active users and on-chain transfers, scrutiny remains high. USDT briefly dipped to $0.9980, its weakest peg in over five years, highlighting the systemic risk associated with its dominance in trading volume. Furthermore, its surging market cap has led to speculation that USDT could eventually challenge Ethereum for the second-largest cryptocurrency spot.

(Source：BeInCrypto)