Over 500 Million USDT is Currently Locked in Smart Contracts

BlocDesk Tether USDT Exchange Withdrawals Active USDT Addresses

Stablecoins have become an integral part of the cryptocurrency industry in recent years. Particularly Tether’s USDT is noting a lot of interest. With over 4.2% of the supply now locked in smart contracts, an interesting milestone has been reached. 

The Dominance of Tether’s USDT

No one will be surprised to learn that Tether’s USDT is still the dominant stablecoin in the industry today. Even with dozens of new tokens launching, it is evident that people remain drawn to this asset. Its overall popularity across exchanges and trading platforms has not decreased either. 

Going over the current statistics, things are heating up for USDT. It has a market cap of over $12.2 billion now. This is a combined collection of the currencies issued across the different blockchains. Unlike most other stablecoins, Tether’s asset is distributed on several networks to provide extra liquidity. 


BlocDesk USDT Market Cap
Source: CoinGecko

The overall market cap growth of USDT in the past year has been very intriguing. On August 17,2019, there were just $3.561 billion of these assets in circulation. Despite a minor increase weeks later, it took until April of 2020 until the $6 billion mark was reached. 

Ever since, the growth has continued at  a much quicker pace. Billions in liquidity have been issued in June and July, with August shaping up to be another strong month. Looking toward the future, reaching $15 billion in issued assets is a matter of time at this time. 

Smart Contract Usage

What is remarkable is how over 4.2% of the Tether market cap is used in smart contracts. While 4.2% may seem small, it represents over $500 million. One of the main beneficiaries of USDT – on Ethereum – is Aave’s lending pool core. It currently holds over 132 million in USDT, or 1.7637% of the total supply on Ethereum. 

BlocDesk USDT Smart Contracts
Source: GlassNode Studios

Curve’s sUSD v2 Swap contract is also high up on the list. Holding $60.512 million in Tether’s currency, it is climbing the ranks very quickly. Compound’s Tether address, on the other hand, holds another $20 million. Gaining a foothold among DeFi projects has been very beneficial to Tether, by the look of things. 

BlocDesk USDT Ethereum DeFi
Source: EtherScan

Determining what will come next is a guessing game. It is possible that more USDT will end up in smart contracts across the various blockchains. Supporting this key stablecoin is beneficial to DeFi providers. Unlocking new use cases for this asset – within smart contracts or outside of it – will be the next frontier. The future certainly looks exciting.