Tether (USDT) has seen a notable surge in on-chain activity, which could signal potential buying pressure following the latest crypto market dip.
Tether’s On-Chain Activity Hits a 6-Month High
According to market intelligence platform Santiment, the number of wallets making USDT transfers recently hit a six-month high, a strong indicator that traders are preparing to re-enter the market.
“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 via X
Historically, major price drops in the market prompt traders to move into stablecoins like USDT and USDC, using them as a store of value before shifting back into Bitcoin (BTC) and altcoins when sentiment improves.
Stablecoin Activity and Market Recovery
Analysts at Santiment note that an increase in USDT activity often aligns with buying pressure that aids market recovery. During sell-offs, traders cash out volatile assets into stablecoins, only to redeploy capital once market sentiment shifts.
With Bitcoin and altcoins experiencing losses amid broader risk-off sentiment, USDT’s on-chain activity has mirrored past accumulation phases. The latest increase in active addresses and network growth resembles Tether’s activity in mid-September 2024, Santiment noted.
Historical Patterns: A Buy Signal?
- On September 14, 2024, Tether recorded the creation of 53,767 new wallets in a single day.
- This surge aligned with what analysts called the “ideal buy time before the bull run”, which saw Bitcoin rally to an all-time high above $109K.
- Now, on March 11, 2025, 143,480 USDT wallets executed transfers, raising speculation that a similar market recovery could be on the horizon.
Will USDT Activity Signal Another Market Turnaround?
While past trends suggest heightened USDT activity often precedes a market rebound, external factors such as macroeconomic conditions, regulatory developments, and institutional sentiment will play a crucial role in determining whether this pattern holds true.
With stablecoin accumulation rising, traders will be closely watching for signs that capital is preparing to flow back into BTC and altcoins, potentially setting the stage for the next major crypto uptrend.
