Tether Sees Rare Shift in Ethereum Wallet Adoption, Down 72,841 in Two Days

Tether (USDT) wallets on the Ethereum blockchain have experienced a sharp decline over the past 48 hours. Within this period, Tether wallets declined by 72,841, marking a 0.54% drop.

Details of Tether drop on Ethereum

On-chain market intelligence platform Santiment has shared the details of Tether declining on Ethereum.

Historically, the total number of Tether addresses increases almost every day. This happens because people are constantly creating new wallets to hold, send or receive USDT for everyday payments.

Thus, a sharp drop like the 0.54% drop in 48 hours is rare and usually only happens when retail buying interest collapses.

A net decrease in USDT addresses suggests a wave of selling or reduced activity from retail participants, rather than steady growth from interest.

This kind of behavior often happens near market bottoms, when pessimism peaks and weak hands finally sell.

Santiment pointed to the last similar large drop that happened between Dec. 19 and 31, 2024. This period coincided with a local bottom in the market, followed by a 10% Bitcoin (BTC) jump in the next two weeks.

Will crypto prices recover?

Santiment added that the decline in USDT addresses is history repeating itself since markets move opposite to the crowd’s expectations.

Essentially, Santiment is saying that selling pressure is exhausting, and a potential rebound is coming for Bitcoin and the broader crypto market.

Currently, the crypto market is showing mild positive momentum, with the total market cap increasing by 2.7% to $2.36 trillion. 

Bitcoin benefited from the latest market recoveries, jumping by 2.8% over the past 24 hours to $68,547. Likewise, Ethereum (ETH) led the rally on the altcoin market, surging by 4.8% to $2,134 within the same period.

Binance Coin (BNB) followed the trend, rallying 1.9%, while XRP and Solana (SOL) rose 2.8% and 3.3%, respectively.

Meanwhile, Santiment noted in an earlier report that Ethereum has gained dominance over other cryptocurrencies in terms of active users. 

According to the report, the Ethereum network showed parabolic growth in the number of holders and numerical terms. At the time of the report, nonzero Ethereum wallets stood at 182.74 million.

In contrast, Bitcoin and Tether recorded 58.51 million and 12.96 million nonzero wallets, respectively. Accordingly, Ethereum had more than 3.12 times as many holders as Bitcoin and 14.1 times more than Tether.