Tether (USDT) solidified its market dominance in late 2025.
This occurred despite a major crypto liquidation cascade in October 2025.
The stablecoin’s market capitalization grew 3.5% between October and February 2026.
Competitors saw significant declines in the same period.
What Happened
The total crypto market cap dropped over a third after October 10. A U.S. tariff announcement triggered an estimated $19 billion in liquidations.
This shock exposed systemic risks in leveraged markets.
USDT navigated this volatility, reaching a $187.3 billion market cap by year-end. It recorded the eighth consecutive quarter of 30M+ user growth.
On-chain transfers hit an all-time high of 2.2 billion per quarter.
Read also: Bitcoin Falls Below $72,500 To 15-Month Low As Crypto Liquidations Hit $740 Million
Why It Matters
USDT is widely used for both saving wealth and everyday transactions (pp. 1, 5). Wallets classified as "savers" hold a significant share of the total balance.
The stablecoin also accounted for 65.9% of the value of all single-asset stablecoin transactions.
Tether's Q4 report shows a company operating with substantial financial strength. Total reserves increased to $192.9 billion, with $6.3 billion in excess equity.
The company's massive US Treasury holdings, exceeding $141 billion, position it as a major global debt holder.
The data suggests a structural shift in stablecoin usage. Users appear to prefer USDt for core financial functions, while other stablecoins facilitate swapping value.
Tether's growing integration into traditional finance is now a significant factor in global liquidity.
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