Tether has experienced a notable spike in on-chain activity in recent weeks, which may indicate a potential increase in buying interest following the recent cryptocurrency downturn.
A market intelligence platform highlights that the on-chain data for Tether (USDT) suggests this trend.
Specifically, analysts at the metrics monitoring service believe that a rise in USDT trading volume signals a change in trader behavior, as they aim to take advantage of current market conditions.
In times of significant price drops, traders often turn to leading stablecoins, utilizing their accumulated purchasing power to invest in Bitcoin (BTC) and other top cryptocurrencies when opportunities arise. Recent data shows that USDT reached a six-month high in the number of wallets conducting transfers in just one day.
“Tether’s on-chain activity has been increasing rapidly, with over 143,000 wallets making transfers yesterday alone (a six-month peak). When $USDT and other stablecoin transactions surge during price declines, it indicates that traders are gearing up to buy,” the platform shared on social media.
The analysts suggest that this uptick in buying momentum has historically supported the recovery of the crypto market. This is primarily due to the utility of stablecoins like USDT and USDC during sell-offs, as traders concerned about price declines often liquidate their holdings for these assets, viewing them as a safer store of value. When market sentiment shifts, these stablecoins become a means to acquire assets at attractive prices.
As BTC and altcoins face substantial losses amid a broader trend of risk aversion, Tether’s on-chain activity has surged. The number of daily active addresses and network expansion over the past week mirrors Tether’s activity from mid-September, according to the platform.
For instance, on September 14, Tether saw 53,767 new wallets created in a single day. This surge coincided with what was seen as the “ideal buying opportunity before the bull run,” which led Bitcoin to surpass an all-time high of over $109,000.
Could the 143,480 USDT wallets that participated in transfers on March 11, 2025, hint at a similar situation?