Tether USDT Drives 40% of Blockchain Transaction Fees Amid $104.1 Billion Supply Growth

Tether’s USDT has solidified its dominance in blockchain activity, with transfers now accounting for 40% of all transaction fees across nine major blockchain networks, according to Tether CEO Paolo Ardoino [1]. This milestone comes as the stablecoin’s supply reached $104.1 billion by early 2025, making it one of the largest stablecoins in the market [1]. The data underscores USDT’s systemic role in driving on-chain economic activity, particularly on networks such as Ethereum, Tron, and Solana.

The widespread adoption of USDT is largely attributed to its cost-effectiveness and liquidity. In particular, Tron and Binance Smart Chain have seen significant volumes of USDT transactions due to their low fees, typically ranging from $0.01 to $0.05 per transfer [1]. In regions with unstable local currencies, USDT has become a preferred tool for payments, remittances, and savings, further amplifying its on-chain presence.

Tether’s financial scale is equally impressive. The company reported a net profit of $4.9 billion in Q2 2025, bringing its total to $5.7 billion for the first half of the year [1]. Additionally, Tether holds approximately $98 billion in U.S. Treasury bills, making it one of the world’s largest institutional holders of U.S. debt. Researchers suggest that Tether’s market activity has helped reduce one-month Treasury yields by up to 24 basis points, highlighting its macroeconomic influence.

Despite its success, Tether continues to face scrutiny from regulators and financial analysts over the transparency of its reserves and compliance practices [1]. The company has not provided a full external audit confirming that its reserves are fully backed by fiat dollars, though it does issue quarterly attestations. The U.S. passed the GENIUS Act in July 2025, signaling a move toward stricter oversight of stablecoins.

Tether’s strategic direction is also evolving. The company is developing its own zero-fee blockchain, named Plasma, as a potential infrastructure shift to further reduce transaction costs and expand USDT’s utility [1]. This move reflects Tether’s broader ambition to control the underlying networks through which its stablecoin operates.

The concentration of blockchain fees in USDT-related activity marks a structural change in how value is transferred across decentralized networks [1]. As stablecoins become more central to digital finance, USDT’s role in shaping the economic dynamics of the blockchain ecosystem is unlikely to diminish in the near term.

Source: [1] Tether's USDT Now Drives 40% of All Blockchain Fees (https://coinedition.com/tether-usdt-dominance-40-percent-blockchain-fees/)