Tether Sees Surge in On-Chain Activity

Tether has witnessed a significant surge in on-chain activity in recent weeks, potentially signaling buying pressure after the latest crypto dip.

Market intelligence platform Santiment notes that on-chain data related to Tether (USDT) supports this observation. Analysts believe that a spike in USDT volume indicates a shift in trader dynamics as they seek opportunities.

Typically, major price drops prompt traders to turn to top stablecoins, using their accumulated buying power to invest in Bitcoin (BTC) and other leading coins when opportunities arise. Data from Santiment shows that USDT recorded a six-month high for the number of wallets conducting transfers in a single day.

> “Tether’s on-chain activity has been rapidly rising, with over 143K wallets making transfers yesterday alone (a 6-month high). When $USDT & other stablecoin activity spikes during price drops, traders are preparing to buy,” Santiment reported on X.

According to analysts, this increase in buying pressure often supports the recovery of the crypto market. During sell-offs, stablecoins like USDT and USDC become essential as traders worry about potential losses and cash out for store-of-value assets. When market sentiment improves, these assets offer opportunities to capitalize on favorable deals.

As BTC and altcoins experience significant losses amid a broader risk-off sentiment, Tether’s on-chain activity has surged. The daily active address count and network growth over the past week reflect Tether’s activity seen in mid-September, according to Santiment.

For instance, on September 14, Tether created 53,767 new wallets in a single day. This surge coincided with an “ideal buy time before the bull run” which saw Bitcoin reaching an all-time high above $109k.

Could the 143,480 USDT wallets that performed transfers on March 11, 2025, indicate a similar scenario?

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