Bitrabo Editorial
Tether’s USDT marks a notable milestone as it celebrates a decade in the crypto sphere. The company has seen remarkable growth due to its large user base, substantial holdings like $97 billion in US government bonds, and efforts to collaborate with US law enforcement to enhance its reputation.
Additionally, Tether has much to cheer about with data indicating that it experienced its strongest user growth in the third quarter of the year, adding 36.25 million new users. Over the past year, Tether has witnessed a consistent 9% growth in its quarterly user rate, providing a solid foundation for expanding its applications and services.
Rising User Adoption on the Blockchain
As noted in a post on Tether.io, the adoption of the USDT stablecoin has surged, boasting over 330 million on-chain wallets and accounts. This figure represents users who had received USDT by the end of Q3.
This count does not include users on centralized exchanges like Binance and Coinbase, which collectively have millions of additional users. A report on October 16 revealed that there are tens of millions of Tether customers using these platforms and other off-chain options.
Tether CEO Paolo Ardoino noted that a significant portion of their user base comes from developing nations. He mentioned that these users typically purchase USDT as a safeguard against inflation and to navigate weak national currencies.
Support from Ethereum Layer 2 and TON
Tether’s competitive edge in the market is attributed to its compatibility with major blockchains such as Ethereum and the Binance Smart Chain. This past quarter, Ethereum’s layer-2 networks were reported to have contributed the most to Tether’s user growth, with Arbitrum and Polygon leading the way last year.
Moreover, Telegram’s The Open Network (TON) played a significant role in expanding Tether’s user base, adding 3.3 million users within a six-month span, which represents 1% of all on-chain accounts.
Future Prospects for Tether
As Tether continues to attract millions of new users, it is exploring avenues to broaden its influence. Reports suggest that the company is evaluating strategies to penetrate traditional finance, particularly in lending. Tether has also invested in various startups, including the crypto mining company Bitdeer and Blackrock Neurotech.
Perhaps the most intriguing development this year involves enhancing its corporate image. In a recent Fox Business interview, Ardoino discussed the positive strides made in partnering with US law enforcement agencies. If Tether can further improve its public perception, significant user growth could be expected in the forthcoming quarters.
Featured image from Forkast News, chart from TradingView