Tether, the company behind the USDT stablecoin, is reporting massive growth in the number of wallets holding its cryptocurrency. This growth, they say, isn’t driven by large investors (“whales”), but by everyday users with smaller amounts of USDT (“minnows”).
Small Wallets, Big Numbers
The number of USDT wallets has exploded. Tether claims a 71% increase over the past year and a whopping 129% increase the year before. The key driver? Wallets holding less than $1,000. This surge was particularly noticeable after the FTX collapse, as people moved their USDT to self-custody rather than leaving it on centralized exchanges. Even the Silicon Valley Bank crisis, which caused some competitor stablecoins to lose their peg to the dollar, didn’t slow USDT’s momentum.
Why the Little Guys Matter
Tether argues that the huge number of low-balance wallets isn’t a problem; it’s a sign of USDT’s success. They see it as proof of the stablecoin’s accessibility, especially for people who may not have easy access to traditional banking. The fact that nearly 30% of these wallets get reactivated further supports this idea, showing that people keep coming back to USDT when they have funds available.
USDT’s Dominance
USDT currently holds a market cap of $1.38 billion, solidifying its position as the leading stablecoin.
