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Tether Tops 500 Million Users But USDT Peg Concerns Abound

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USDT, USDC, and USDe Market Cap Performances

Tether’s USDT has crossed a major milestone, surpassing 534 million users, even as the broader crypto market remains under pressure following a sharp contraction that began in October 2025.

According to the company’s Q4 2025 USD₮ Market Report, the stablecoin added more than 35 million users in the quarter, marking the eighth consecutive quarter of adding over 30 million users.

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USDT Expands as a Global Store of Value Even as Crypto Market Cap Contracts

The growth comes during a period of declining risk appetite. Since the October 10 liquidation cascade, the total crypto market capitalization has fallen by more than one-third (30%). Meanwhile, USDT’s supply has continued to expand modestly.

Tether reported that its market capitalization rose to $187.3 billion, up $12.4 billion in Q4, even as some competing stablecoins shrank.

USDT, USDC, and USDe Market Cap Performances
USDT, USDC, and USDe Market Cap Performances. Source: TradingView

Tether attributes the resilience to demand for savings, payments, and cross-border transfers rather than purely speculative trading.

On-chain metrics cited in the report show rising wallet balances among long-term holders and record transaction volumes.

However, the estimates of total users include both on-chain wallets and approximations of exchange users, making independent verification difficult.

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Reserve disclosures also show continued expansion. Total reserves reached $192.9 billion, including $141.6 billion in US Treasuries, a level that would place Tether among the largest Treasury holders globally if it were a country.

Tether Reserves
Tether Reserves. Source: Q4 2025 Market Report

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The company also increased its Bitcoin holdings to 96,184 BTC and its gold reserves to 127.5 metric tons, reflecting a strategy to diversify collateral beyond cash-equivalent assets.

On-chain activity continued to grow rapidly. The number of USDT holders rose to 139.1 million, while monthly active users reached 24.8 million, both record highs.

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Number of USDT Holders by Holder Type
Number of USDT Holders by Holder Type. Source: Tether Q4 2025 Report

The value transferred on-chain reached $4.4 trillion in Q4, and USDT’s share of spot trading volumes on centralized exchanges climbed to 61.5%. This highlights its role as the dominant settlement asset in crypto markets.

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Minting Surge, Peg Wobbles, and Flippening Talk Highlight USDT’s Growing Systemic Role

Recent issuance activity suggests demand has carried into early 2026. On February 4, blockchain analytics account Lookonchain reported that Tether minted $1 billion in USDT, part of roughly $3 billion in stablecoins issued by Tether and Circle over three days.

Large issuances are often interpreted by traders as a signal of incoming liquidity, although newly minted tokens are not always immediately circulated.

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At the same time, Tether’s growing dominance has intensified scrutiny. Market attention briefly turned to USDT’s stability after the token slipped to around $0.9980, its weakest level in more than 5 years.

While the deviation was small and short-lived, any sustained loss of confidence in the peg could have outsized consequences, given the stablecoin’s central role in trading infrastructure.

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Tether’s USDT Depegs from $1
Tether’s USDT Depegs from $1. Source: CoinGecko

Market estimates often suggest that most crypto trading volume flows through USDT pairs, making it a critical pillar of liquidity.

The scale of Tether’s expansion has also fueled debate over its place in the crypto hierarchy. Some market observers have speculated that, if current trends continue, USDT could eventually challenge Ethereum’s position as the second-largest cryptocurrency by market capitalization, particularly during prolonged periods of risk aversion when capital rotates into stable assets.

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Meanwhile, the latest data shows that USDT is expanding in terms of users, reserves, and transaction volume, even as the broader market contracts.

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Yet that same growth is concentrating liquidity and systemic importance in a single instrument. The stability of Tether’s peg is increasingly tied not just to one company, but to the resilience of the crypto market itself.

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Crypto World

Solana Price Charts Are Hinting at a Potential Rally Toward $110 Next

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Solana Price Charts Are Hinting at a Potential Rally Toward $110 Next

Solana’s SOL (SOL) has rallied 10% over the past 24 hours, rising to an intraday high of $86 on Wednesday.

The recovery was accompanied by a leap in futures activity, with SOL’s open interest rising by more than 5% to $5.27 billion.

Analysts are now focusing on the short-term technical setup and fundamental indicators that may signal a major turning point for SOL.

Key takeaways:

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  • SOL price has risen 10% in 24 hours, fueled by bullishness in the broader market and Solana ETF inflows.

  • Solana’s symmetrical triangle breakout targets $110 SOL price.

SOL recovers with the crypto market

The SOL/USD pair rose as much as 13.6% to $86 on Wednesday from a two-week low of $75 on Tuesday, amid a marketwide recovery.

Bitcoin (BTC), the market leader, was trading at $66,800 at the time of writing, up 5% over the 24 hours. Second-placed Ether (ETH) has gained about 8% on the day to trade just above $1,990. XRP (XRP) has also posted significant daily gains among the top 10 cryptocurrencies, up 6% over the same period.

As a result, the global crypto market capitalization is up 4% on the day to $2.28 trillion on Wednesday.

Performance of top-cap cryptocurrencies: Source: CoinMarketCap

Solana’s surge today is accompanied by significant short liquidations totaling $15.4 million over the last 24 hours, signaling intense demand-side pressure.

The buyers were also US-based spot Solana ETFs, which have recorded $40 million in net inflows since Feb. 9.

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Spot Solana ETFs flows table. Source: Farside Investors

The growing demand-side pressure that could push SOL prices higher when coupled with increased inflows from global Solana investment products and buying by whales.

Cryptocurrencies, Markets, Price Analysis, Tech Analysis, Market Analysis, Altcoin Watch, Solana, ETF
Source: Lookonchain

SOL’s symmetrical triangle breakout targets $110

Data from TradingView shows SOL price breaking above a symmetrical triangle on the six-hour time frame, as shown in the chart below.

The price needs to close above the 100-day simple moving average (SMA) at $86 to sustain the upward momentum.

The measured target of the prevailing pattern, calculated by adding the height of the triangle to the breakout point, is $110, coinciding with the 50-day SMA. This represents a 28.5% rally from the current levels. 

SOL/USD 6-H chart. Source: Cointelegraph/TradingView

As Cointelegraph reported, a daily candlestick close above the 20-day EMA, currently at $88, would open the way for a rise toward $95 and later to $117. 

Glassnode’s realized price distribution data for Solana shows limited historical buying activity above $85, suggesting that the bulls could easily break this resistance.

In other words, there are relatively few SOL holders with a cost basis above this zone, reducing the chances of sellers stepping in decisively until the price reaches higher supply zones. 

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The next significant resistance sits at $115, where approximately 22 million SOL were previously acquired.

SOL: UTXO realized price distribution (URPD). Source: Glassnode