USDT Wallets Reach 6-Month Peak, Indicating Potential Buying Demand

Recently, Tether has seen a noteworthy increase in on-chain activity, which could be indicative of potential buying pressure following the recent cryptocurrency downturn.

Santiment, a market intelligence platform, has identified on-chain data related to Tether (USDT) that supports this observation.

Analysts from the on-chain and social metrics monitoring platform suggest that a surge in USDT volume may signify a change in traders' behavior as they prepare to capitalize on the current market conditions.

In general, traders tend to move towards prominent stablecoins during significant price drops, amassing buying power to enter Bitcoin (BTC) and other top coins when the situation is favorable. Santiment's data reveals that USDT reached a six-month high in terms of the number of wallets making transfers within a single day.

"Tether's on-chain activity has been rapidly increasing, with over 143K wallets conducting transfers yesterday (a 6-month high). When $USDT and other stablecoin activity surges during price drops, traders are preparing to buy," the platform shared on X.

According to the analysts, the growth in buying pressure has often facilitated the recovery of the cryptocurrency market. This is primarily because stablecoins like USDT and USDC (USDC) play a crucial role during sell-offs. Traders who are concerned about possible market dumps typically cash out and acquire stablecoins as potential store-of-value assets. When market sentiment improves, these assets present an opportunity to secure profitable deals.

As Bitcoin and altcoins suffer significant losses amid widespread risk-off sentiment, Tether's on-chain activity has skyrocketed. The daily active address count and network growth over the past week closely resemble Tether activity from mid-September, as noted by Santiment.

For example, on September 14, Tether witnessed the creation of 53,767 new wallets in just one day. This overall surge coincided with the "ideal buy time before the bull run," which ultimately led Bitcoin to reach an all-time high above $109k.

Could the 143,480 USDT wallets that executed transfers on March 11, 2025, foreshadow a comparable scenario?