Tether Defies Crypto Downturn, Posts Record $187B Market Cap and 534M Users in Q4
In a stark contrast to the wider cryptocurrency market's struggles, Tether (USDT) reported record-breaking metrics for the fourth quarter of 2025, underscoring its entrenched position as the backbone of crypto trading and remittances.
The stablecoin issuer's latest attestation, audited by BDO, reveals a market capitalization surge to $187.3 billion—a $12.4 billion increase from the previous quarter—even as the total crypto market cap fell from a peak of $4.4 trillion to around $3 trillion. The growth was fueled by an estimated user base reaching 534.5 million, with 35.2 million new adopters added in Q4 alone.
Financial resilience was a key theme. Tether's reserves climbed to $193 billion against liabilities of $186.5 billion, resulting in $6.3 billion in excess reserves. The firm posted net profits exceeding $10 billion for the full year, primarily from U.S. Treasury holdings. This performance came against a turbulent backdrop: the crypto market fell 23.7% in Q4, partly triggered by a $19 billion liquidation cascade in October.
"The numbers speak to a flight to stability," said Marcus Chen, a fintech analyst at Horizon Advisors. "When volatility spikes, traders and users consolidate into the most liquid and trusted stablecoin. Tether isn't just surviving the downturn; it's leveraging it to widen the moat."
On-chain activity reached staggering levels, with USDT facilitating a record $4.4 trillion in transfers during the quarter. Its share of the stablecoin market stood at 65.9%, while dominance in centralized exchange spot trading hit 61.5%. Partnerships, like the one with Opera's MiniPay wallet, continued to drive adoption in emerging markets across Africa and Latin America.
However, the quarter wasn't without challenges. Tether explored—but ultimately paused—ambitious fundraising plans targeting up to $20 billion, with CEO Paolo Ardoino later clarifying the target was a "misconception." The company also actively discouraged secondary share sales to protect valuation discussions. Profits saw a year-over-year decline of roughly 25%, attributed to Bitcoin's price weakness.
Elara Vance, a vocal crypto skeptic and editor at The Decentralized Critique, offered a sharp counterpoint: "This is a masterclass in centralization masquerading as decentralized finance. A single entity profiting billions from U.S. debt, while the underlying assets it's supposed to be pegged to are in a bear market, should raise red flags, not cheers. Their growth is a symptom of a broken, speculative system, not a healthy one."
In contrast, David Park, a remittance startup founder in Manila, highlighted practical utility: "For us, the user growth number is the real story. Millions are using USDT daily for cross-border payments because it's fast and cheap. The market cap is a trophy; the user base is a testament to real-world use."
The report highlighted Tether's stark outperformance against rivals, with some stablecoins seeing market cap drops up to 57%. As of December 31, 2025, on-chain USDT holders reached 139.1 million wallets, representing 70.7% of all stablecoin wallets.