Insights on USDT On-Chain Holders: A Key Indicator of Adoption and Trust
By the end of Q3 2024, over 330 million wallets and accounts had received USDT on-chain, highlighting the growing adoption of the stablecoin across various platforms and users. This figure, however, only accounts for wallets that have received USDT, leaving out the significant number of individuals using the token exclusively on centralized platforms. This suggests that the true number of USDT users is even larger.
The Growing Base of USDT Holders
At the start of Q4 2024, USDT was held in 109 million on-chain wallets, more than double the number of Bitcoin holders and close to the 128 million Ethereum wallets. This makes USDT one of the most widely held digital assets. Additionally, 86 million accounts on centralized platforms have received USDT deposits, demonstrating the token's importance in centralized ecosystems as well.
Although we do not have direct access to the balances of these accounts, many of these users likely continue holding USDT. When combining the 109 million on-chain holders with estimates of reactivated wallets, we can reasonably estimate that at least a third to half of the 330 million wallets that have ever received USDT still hold the token today, showcasing its continued trust and utility as a store of value.
Reactivation and Continued Use of USDT
An interesting trend is that many wallets with small balances or no balances at all may become active again in the future. For example, 29% of wallets with less than one cent of USDT have been reactivated in the past, showing that users tend to return to using USDT for recurring payments. While more than half of wallets holding USDT have balances of less than one cent, many of these are likely to become active again.
In total, this brings the number of active or likely-to-be-reactivated wallets to around 165 million, in addition to the numerous accounts holding USDT on centralized platforms.
USDT’s Role in Emerging Markets
While there are 18.7 million wallets holding between one cent and one dollar of USDT, this small amount can still be significant, particularly in emerging markets where many people live on less than $10 a day. According to the World Bank, 59% of the global population lives in such conditions, and USDT is helping to bring financial inclusion to those typically unbanked.
Further, there are 31.5 million wallets holding between $1 and $1,000 of USDT, indicating that a significant number of users are saving in USDT for longer periods, with fewer transactions. A smaller segment—just over a million wallets—holds more than $1,000 in USDT, with two-thirds of these holding between $1,000 and $10,000.
USDT’s Dominance in the Stablecoin Market
USDT continues to lead the stablecoin market by a wide margin, with four times more wallets holding it than all other stablecoins combined. As of November 2024, 54 million on-chain wallets held more than one cent of USDT, compared to just 13.8 million wallets for other stablecoins. This 4:1 ratio spans 25 stablecoins across 10 blockchains, covering 97.5% of the stablecoin supply.
USDT’s growth has been extraordinary, with a 71% increase in the number of wallets holding it over the past year and a 129% increase the year before. This surge can be attributed to factors like users opting for self-custody of USDT following the collapse of platforms like FTX, and the resilience of USDT even when competitors such as USDC and DAI experienced issues.
Comparison with Other Stablecoins
In contrast, other stablecoins have not seen similar growth in holders. While USDT’s growth has been impressive, the 24 stablecoins aside from USDC have seen only a modest 3% growth in the last 12 months. USDC has experienced some growth, particularly on platforms like Solana and Base, but USDT still accounts for a significant portion of stablecoin holders on Solana.
Conclusion
USDT has firmly established itself as a trusted and widely-used stablecoin, empowering millions around the world to participate in the digital economy. The fact that over 100 million users hold USDT in their wallets, and that the token continues to dominate the stablecoin space, underscores its crucial role in financial inclusion and the broader adoption of blockchain technology. The prevalence of small balances highlights USDT’s accessibility, especially for those in emerging markets. Furthermore, the high reactivation rate of low-balance wallets suggests that USDT is serving as a reliable financial tool for users with limited access to traditional banking.
As USDT continues to grow, its impact as a tool for financial freedom becomes even more evident, providing millions of people around the world with an easy, accessible, and stable means of transacting, saving, and managing their funds.
