Tether’s USDT, recognized as the largest stablecoin in the cryptocurrency industry, recently marked a significant milestone by celebrating its 10th anniversary. Over the past decade, Tether has demonstrated remarkable growth, bolstered by its loyal user base and strategic investments. The company’s holdings, which include an impressive $97 billion in US government bonds, have played a crucial role in its expansion. Moreover, Tether has outlined plans to partner with US law enforcement agencies, which is expected to further enhance its brand reputation and trust among users.
Record-Breaking User Growth in Q3
The team behind Tether has yet another reason to celebrate, as recent data indicates that the company achieved its best quarter ever in terms of user growth. In the third quarter alone, Tether’s USDT added a staggering 36.25 million new users. This surge represents a 9% average increase in quarterly user data over the last 12 months. Such growth underscores Tether’s ability to expand its use cases and applications, providing a solid foundation for its future endeavors.
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On-Chain Tether USDT Users Propel Expansion
According to a report from Tether.io, the adoption of Tether’s stablecoin continues to rise, with over 330 million in-chain wallets and accounts by the end of the third quarter. These figures exclude users on centralized platforms like Binance and Coinbase, where tens of millions more users engage with USDT. An October 16th report highlighted the significant number of Tether customers on these exchanges and off-chain venues.
Paolo Ardoino, Tether’s CEO, noted that most of Tether’s users come from developing countries. These users primarily purchase USDT as a hedge against inflation and the instability of their local monetary systems, further driving the coin’s popularity.
Tether’s USDT Gains Momentum from Ethereum L2s and TON
A key factor in Tether’s ongoing success is its support of prominent tier-1 blockchains, including Ethereum and the Binance Smart Chain. Notably, Ethereum-based layer-2 networks have been significant contributors to Tether’s user base this quarter. Last year, Arbitrum and Polygon emerged as major drivers of user growth for Tether.
Additionally, Telegram’s The Open Network (TON) has played a crucial role in expanding Tether’s reach. According to Philip Gradwell of Tether, TON added 3.3 million users in just six months, accounting for 1% of all on-chain accounts. This integration has opened new avenues for Tether to connect with a diverse range of users across different platforms.
Looking Ahead: Tether’s Ambitious Future Plans
As Tether continues to gain millions of new users, the company is actively exploring avenues to broaden its impact. Reports suggest that Tether is studying ways to enter the traditional finance sector through lending initiatives. Furthermore, the company has made strategic investments in emerging startups, such as Bitdeer, a crypto mining company, and Blackrock Neurotech, which reflect its commitment to innovation and expansion.
One of the most intriguing developments for Tether this year involves its efforts to enhance its image. In an interview with Fox Business, CEO Ardoino revealed that collaboration with US law enforcement agencies is progressing positively. This strategic move is expected to bolster Tether’s credibility and pave the way for even more robust user growth in the coming quarters.
