Tether’s USDT, the largest crypto stablecoin, recently celebrated its 10th year in the industry. The company’s growth has been impressive, thanks to its consistent user base, holdings that include $97 billion in US government bonds, and its plans to partner with US law enforcement agencies to strengthen its brand.
Now, the team behind Tether may have another reason to celebrate: data suggests that Tether’s USDT user growth recorded its best quarter in Q3 by adding 36.25 million new users. The company added that its quarterly user data increased by 9% on average over the past 12 months, giving it enough cushion as it expands its use cases and applications.
USDT price action in the last 24 hours. Source: CoinMarketCap
On-Chain Tether USDT Users Drive Growth
In a post on Tether.io, the company boasts of the increasing adoption of its stablecoin, reporting more than 330 million wallets and accounts. The company clarified that these refer to users who received the stablecoin at the end of the third quarter.
Source: Tether
This number does not include users who use the coin on centralized platforms such as Binance and Coinbase, which also number in the several million. An October 16 report showed tens of millions of Tether customers on these foreign exchanges.
According to Tether CEO Paolo Ardoino, most users are from developing countries. He explained that most users buy USDT to protect themselves from inflation and their country’s weak financial systems.
As of today, the market cap of cryptocurrencies stood at $2.26 trillion. Chart: TradingView.com
Tether’s USDT Also Gets Help From Ethereum L2s and TON
Part of Tether’s success in the industry is its support for tier 1 blockchains like Ethereum and Binance Smart Chain. According to the company, Ethereum-based layer-2 networks contributed the most users this quarter. Last year, Arbitrum and Polygon added more users to the Tether pool.
Source: Tether
Telegram’s The Open Network (TON) was also instrumental in growing Tether’s user base. According to Philip Gradwell of Tether, TON has added 3.3 million users in six months, making up 1% of all on-chain accounts.
Tether: The Way Forward
As Tether continues to gather millions of new users, the company is looking for ways to expand its reach. According to reports, the company is studying ways to tap into human capital through lending. The company has also invested in several startups, such as Bitdeer, a crypto mining company, and Blackrock Neurotech.
However, its most exciting move this year is related to image creation. In an interview with Fox Business, Arduino shared that cooperation with US law enforcement agencies is going well. If Tether improves its image, we could see significant user growth over the next few quarters.
Featured image from Forkast News, chart from TradingView
Source link