USDT Wallets on Ethereum Network Drop by 251K in 11 Days: Is Demand Waning?

USDT wallets on Ethereum decreased by 251,350 in 11 days, marking the sharpest short-term decline since the post-FTX period.

The USDT user base on the Ethereum network narrowed rapidly during an 11-day period starting September 5. According to Santiment’s Sanbase Total Holders data, the number of non-empty wallets decreased by 251,350. This metric does not track unique users but rather wallets containing USDT.

The drop was recorded as the sharpest short-term decline since the period following the FTX collapse in December 2022. Santiment noted that during that time, trust in exchanges was shaken, and users rapidly changed how they held their crypto assets.

Why Is the USDT Wallet Base on Ethereum Shrinking?

This rapid decline in the number of 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 stated that this movement alone does not indicate that USDT demand has collapsed. However, the fact that a wallet base that has been rising for years declined on this scale in just 11 days shows that the behavioral shift in Tether usage has reached a noteworthy level. The chart shows the number of USDT wallets on Ethereum at approximately 15.75 million.