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- Tether hits $187.3B ATH in Q4 as rivals struggle and market volatility intensifies.
- USDT activity surges with 24.8M wallets and $4.4T transfers despite peg concerns.
- Regulators approve USDT as AFRT, expanding access across major blockchain networks.
Tether reached a new peak in Q4 2025. The circulating supply of USDT climbed to an all-time high of $187.3 billion. The milestone came during a weak crypto market that followed October’s heavy liquidation wave. The increase also renewed concerns about potential peg instability.
Tether also reported several major achievements during the quarter. This rise in circulating supply happened during a time when overall market sentiment was stressed.
The cryptocurrency market was subject to sharp volatility on Oct. 10 due to discussions about the U.S.-China tariff conflict. This caused significant liquidations for large assets.
Stablecoin Competition Slows While USDT Usage Accelerates
The rival stablecoins had not achieved the same level of momentum. Circle’s USDC had fluctuations for the rest of Q4 but closed the period with minimal changes.
Ethena’s USDe, which had become the third-largest stablecoin by market capital ranking on CoinMarketCap, had dropped by 57% during the period. The contrast highlighted Tether’s continued dominance.
User activity on Tether’s network grew sharply. Monthly active USDT wallets reached 24.8 million, which accounted for 70% of all stablecoin wallets. Quarterly transfer volume reached $4.4 trillion. On-chain transfers totaled 2.2 billion, showing significant demand for USDT transactions.
Tether also recorded stronger reserves. The company ended Q4 with $192.9 billion in total reserves. That figure rose by $11.7 billion from the previous quarter. Net equity reached $6.3 billion, reflecting the results of the reserve expansion.
Also Read: CFTC Drops 2024 Ban on Political Outcome Contracts in Prediction Markets
Tether Peg Slips, Raising Broader Market Concerns
Despite these improvements, the peg drew attention. USDT slipped to $0.9980, marking its weakest level in more than five years.
Analysts noted that this decline increased concerns over a possible unpegging event. They warned that such a move could carry wide consequences because more than 87% of trading volume uses USDT pairs.
Another important decision was taken by regulators in this quarter. The Abu Dhabi Global Market has recognized USDT as an “Accepted Fiat-Referenced Token” or AFRT.
The stablecoin has thus been able to secure formal entry into multiple blockchains, including Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON.
Tether’s position has become stronger despite the pressure-filled quarter. The strength of its position has been fueled by the weakening of its competitors.
However, the stability of its peg continues to be the central concern. The next quarter could be critical in determining whether its rising reserves and activity will mitigate the risks associated with its market share.
Also Read: Bhutan Moves $22.4M in Bitcoin as Government Adjusts Its Strategy
