Recent onchain activity for Tether has reached a six-month pinnacle, suggesting that traders may be preparing to re-engage with the market, as per experts.
Analytics released on March 12 indicate that Tether’s (USDT) onchain operations have increased, with over 143,000 wallets participating in transfers on March 11, marking the highest level in six months.
According to analysts, “When USDT and other stablecoin activities surge during market downturns, traders are likely positioning themselves for purchases. Increased buy pressure can facilitate price recovery in cryptocurrencies.”
Tether’s onchain activity has surged, hitting a six-month record high. Source: Santiment
This spike coincided with Bitcoin (BTC) falling to its lowest price in four months at $76,700 on March 11, as the broader crypto market continued to lose ground gained after the US elections amidst economic uncertainties and a rising trade conflict.
In a conversation with Cointelegraph, Vincent Liu, chief investment officer at Kronos Research, mentioned that traders typically accumulate Tether during market dips to create buying opportunities, contributing to the buy pressure that can assist in price recoveries.
He theorizes that the rise in USDT wallet activity likely indicates traders are taking advantage of the recent volatility in the market.
“Potential factors driving this include broader economic uncertainties, crypto-specific events such as regulatory changes, and shifts in post-election sentiment, as well as Tether’s position as a stable haven, which makes it an appealing option for investors looking to strategically allocate capital,” Liu explained.
Liu considered the jump in USDT activity as a positive signal, hinting at considerable buying power on the sidelines, but he noted that the recovery of the crypto market will likely hinge on various factors, including economic conditions, regulatory clarity, investor confidence, and the Federal Open Market Committee (FOMC) meeting on March 18.
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A lead analyst mentioned that while several key market indicators, such as M2, are trending upward, a substantial rebound is unlikely until political and economic volatility is mitigated.
“The inflation data coming out of both China and the US this week is constructive — but while the trade conflict persists, we can expect the market to remain hesitant,” he added.
“Many investors have stopped reacting to the news cycle, opting instead to hold cash in Tether. Currently, the market appears to be in a holding pattern, with increasing cash circulating and awaiting a favorable entry point.”
The analyst pointed out that “the market looks bleak at the moment,” yet it has reverted to October levels of USDT dominance, which preceded a pre-Christmas surge that once propelled Bitcoin to reach $100,000 for the first time.
A significant sentiment gauge, the Crypto Fear & Greed Index, plummeted to its lowest level in more than two years on February 26, sinking further into “Extreme Fear” territory with a score of 10.
The index represents current emotions and sentiments in the crypto market, with a top score of 100 and a bottom score of 0. Source: alternative.me
While crypto sentiment has made some recovery since then, the index still showed a score of 45 on March 13, which indicates a state of fear.
Tether CEO Paolo Ardoino touring the US
At the same time, the CEO of Tether, Paolo Ardoino, is touring the US as regulators move to establish guidelines for the industry.
During a speech at a recent technology conference, he highlighted that around 37% of USDT users utilize the stablecoin as a means to store value, effectively treating it like a savings account.
“Many don’t hold conventional bank accounts. The primary financial resource they rely on is usually cash,” Ardoino stated.
“Now they can hold the leading and most significant stable currency globally, the US dollar, all on their smartphones as their savings account.”
The CEO of @Tether_to, @paoloardoino, speaks at Cantor’s Global Tech Conference. #CantorTechhttps://t.co/2z8d46WDMG
— Cantor (@Official_Cantor) March 12, 2025
Ardoino also mentioned that Tether is standing as a stronghold for the US dollar amidst rising worries about its potential decline as the dominant global reserve currency and as a choice for international trades and commodity exchanges.
The stablecoin issuer is actively working to address illicit activities within the sector, having collaborated on over 170 law enforcement initiatives and freezing approximately $2.5 billion in illegal funds, as per Ardoino.
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