According to a report by crypto market research firm Kaiko, trading with Tether's USDT stablecoin has fallen to multi-year lows, despite its recent rise to near all-time highs in market capitalization.

This has raised questions about the token's growth, as stablecoins are primarily used for trading. While USDT's supply has increased to $83 billion, its use has fallen, which seems unusual.

The decline in trading volumes may be due to lackluster crypto trading during a bear market and Binance reintroducing trading fees for USDT asset pairs. However, USDT's market capitalization has not declined in tandem with trading volumes, which is unusual.

One possible explanation for this trend-defying growth is the rotation to off-shore exchanges from regulated ones as U.S. regulators are increasingly separating crypto from the traditional financial system. Another explanation may involve the Tron blockchain and its lower fees compared to Ethereum.