When I first started exploring decentralized finance (DeFi), I thought stablecoins were all basically the same. After all, they’re designed to be stable, right? But the deeper I got into yield farming, lending, and liquidity pools, the more I realized that the choice of stablecoin really matters. Today, even though there are countless options out there, Circle’s USDC, DAI, Frax, and even newer algorithmic models, I still find myself coming back to Tether (USDT) as my go-to stablecoin in DeFi.
In this blogpost, I’ll walk you through the three main reasons why I prefer Tether (USDT) over other stablecoins. These reasons come from real experiences using different platforms, comparing liquidity, and watching how stablecoins behave under pressure.
Tether (USDT) Offers the Deepest Liquidity in DeFi
Liquidity is the lifeblood of decentralized finance. If a token doesn’t have enough trading pairs, deep liquidity pools, or strong exchange support, it can be frustrating to use. Whenever I’ve needed to swap tokens quickly, provide liquidity, or move in and out of positions without high slippage, Tether (USDT) has always been the easiest option.
Tether dominates trading volumes across both centralized exchanges (CEXs) and decentralized exchanges (DEXs). If you look at Uniswap, Curve, or Aave, you’ll notice that USDT liquidity pools are almost always among the largest. That means when I use Tether in DeFi, I get tighter spreads, faster fills, and much less price impact compared to many smaller stablecoins.
Even when I experimented with USDC and DAI, I often noticed higher slippage in large trades. With Tether (USDT), I can move more confidently because I know there’s enough liquidity across multiple blockchains to back up my transactions. For someone who values efficiency in DeFi, this makes a huge difference.
Tether (USDT) Has the Widest Multi-Chain Support
Another reason I stick with Tether is its incredible cross-chain presence. DeFi doesn’t live on just one blockchain anymore. I’ve had to move assets between Ethereum, Tron, Solana, Polygon, Arbitrum, and even emerging ecosystems like Avalanche. And guess which stablecoin I can almost always count on being there? Tether (USDT).
Many stablecoins claim to be cross-chain, but none match the scale of Tether. That flexibility means I don’t get stuck when I want to switch from Ethereum-based DeFi apps to cheaper, faster chains. For example, if gas fees spike on Ethereum, I can quickly shift my Tether over to Polygon or Arbitrum and keep farming or trading without paying outrageous transaction costs.
I’ve also noticed that new DeFi platforms often prioritize listing USDT early because of the demand it brings. That makes it much easier for me to test out fresh opportunities without worrying about whether my stablecoin of choice will be supported.
Tether (USDT) Still Commands the Strongest Network Effect
At this point, Tether isn’t just a stablecoin, it’s an institution in crypto. Whether people love it or criticize it, USDT remains the most widely used and recognized stablecoin worldwide. That network effect gives it staying power that others haven’t quite matched yet.
For me, this matters in DeFi because I want to hold a stablecoin that others trust enough to use. When protocols integrate new stablecoin features, they almost always support USDT first. When liquidity providers set up new pools, USDT is usually there. And when traders move millions, or even billions, across chains, USDT is the stablecoin they rely on.
Of course, Tether has faced plenty of scrutiny about its reserves and transparency. I’ve kept an eye on those concerns too. But the reality is that even with regulatory pressure and competing stablecoins entering the market, USDT continues to dominate usage, especially in high-growth regions like Asia, Africa, and Latin America. For me, that makes it a safer bet in terms of adoption and reliability compared to other stablecoins that still feel niche in many parts of the world.
Final Thoughts
DeFi gives us the freedom to choose from dozens of stablecoins, but for me, Tether (USDT) remains the most practical option. Its liquidity is unmatched, its multi-chain availability makes it versatile, and its global network effect gives it staying power.
I’m not saying USDT is perfect, no stablecoin is, but when I’m making decisions about where to farm yield, stake liquidity, or move capital across blockchains, I’d rather use the token that has proven itself over and over. That’s why, even with strong competitors like USDC and DAI, Tether (USDT) is still my number one stablecoin for DeFi in 2025.
