USDT Wallets on Ethereum Plummet by 251K Amid Growing Uncertainty

The number of USDT wallets on the Ethereum network has dropped significantly over an 11-day period, raising questions about demand for the stablecoin. According to Santiment's Sanbase Total Holders data, there was a decline of 251,350 non-empty wallets containing USDT between September 5 and September 16.

This represents the sharpest short-term decline since the post-FTX period in December 2022, when trust in exchanges was shaken and users rapidly changed how they held their crypto assets. During that time, the number of USDT wallets on Ethereum also decreased.

The rapid decline in the number of USDT wallets suggests an unusual repositioning in USDT usage. Users may have consolidated their wallets instead of holding assets across multiple addresses. The migration of activity to networks other than Ethereum is also among the possibilities.

Santiment noted that this movement alone does not indicate that USDT demand has collapsed, but it shows a noteworthy level of behavioral shift in Tether usage. The number of USDT wallets on Ethereum currently stands at approximately 15.75 million.