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).
Key Takeaways
Enhancing Cross-Border Payments
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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
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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
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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.
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