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Tether (USDT) Analyst Report
By: Cooper Duschang & The Coin Metrics Team
Introduction
When markets are volatile, selecting the right stablecoin is key to preserving value. Differences in stablecoin issuance processes, reserve investments, and distribution strategies all shape a stablecoin’s adoption and utility. While some are more tailored to regulated, onshore markets, USDT has become the stablecoin of choice in emerging markets, where liquidity, accessibility, and strong network effects matter most.
With 154B in total supply (68% market share) and monthly transfer volumes approaching $800B, USDT is well integrated across the spectrum of stablecoin use-cases, serving as a tool to store and exchange value on-chain, while extending global access to the U.S. Dollar.
In this issue of Coin Metrics’ State of the Network, we release our overview report on Tether (USDT), diving into its adoption, utility, and risk dynamics, building on our previous spotlights into Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Source: Tether (USDT) Overview Report
Key Takeaways from the Report:
Enhancing Cross-Border Payments
Fast, low-cost transactions make USDT a compelling solution for remittances, especially on networks like Tron. These efficiencies reduce reliance on traditional payment rails, while consistent 1:1 redemption maintains access to U.S. dollar value, particularly in emerging markets where access to dollars is limited.
Accessibility & Deep Liquidity
USDT is widely accessible across both centralized and decentralized platforms. Large amounts can be acquired via AMMs optimized for stablecoin swaps or through deep CEX spot markets. This accessibility has driven rapid adoption and integration across blockchain applications.
Institutional Transactions Adoption
USDT’s peg stability has increased its appeal as a preferred tokenized dollar for institutions seeking yield opportunities or simplifying payment processes, highlighting that USDT is used well beyond just retail participants.
To complement this report, we also made a Tether (USDT) Overview dashboard using our new dashboard application. The dashboard visualizes USDT’s supply growth, market share, adoption trends, network activity and more.
Network Data Insights
Summary Highlights
Source: Coin Metrics Network Data Pro
Daily transaction activity across major Layer-1 blockchains has seen notable shifts lately. Solana’s (non-vote) transaction count has increased 1.7x over the past year, most recently reaching ~99M. This week, Ethereum surpassed Ripple in transaction count, while Avalanche’s C-Chain has more than doubled its transaction activity since the start of June. Meanwhile, Bitcoin has seen a decline, with daily transactions falling from 502K in May to 314K.
Coin Metrics Updates
We’re excited to announce the launch of our new and improved dashboard application! To explore the tool, check out our release announcement and Tether (USDT) Overview dashboard.
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