Tether Surpasses Ethereum in Market Cap as ETH Prices Plunge
Vexoda Newsroom
Ether's market capitalization fell to $185 billion after a significant price drop, allowing Tether (USDt) to surpass it. This shift reflects the growing demand for stablecoins amid crypto volatility.
In recent days, Ethereum’s dominance in the cryptocurrency market was challenged as Tether's USDt surpassed Ether by market capitalization. On Friday, Ether dropped 5.2% over a 24-hour period to $1,510 on Coinbase, marking its lowest price of the year and causing its market cap to fall below $185 billion.
The shift in rankings is significant as USDt's market cap rose above $186 billion, making it the second-largest cryptocurrency. Andri Fauzan Adziima from Bitrue Research Institute commented that this highlights a preference for stability over Ethereum’s volatility among crypto investors.
This development underscores the accelerating growth of stablecoins in the broader crypto ecosystem. According to 21Shares, stablecoin supply has recovered significantly since the last bear market and is now at record highs, representing nearly 15% of total crypto market capitalization.
Alvin Kan from Bitget Wallet emphasized that this milestone indicates a strong demand for reliable on- and off-ramps during volatile periods. He noted that while Ethereum must continue to deliver compelling utility and momentum, the growth in stablecoins is positive for the broader market due to increased liquidity and trading volumes.
Despite these changes, not all are bearish. Sharplink, an ETH treasury company, made its first purchase of 5,000 ETH since October 2025 at this low price point. Bitmine also added 76,881 ETH last week as they accumulate at lower prices.
The internal changes within the Ethereum ecosystem, including several executive departures and a workforce reduction by the Ethereum Foundation, have contributed to these market dynamics. However, a new nonprofit organization called Ethlabs was launched this week with backing from Ether treasuries Bitmine and Sharplink, signaling ongoing support for the network.
This shift in rankings between Tether and Ethereum is part of an evolving landscape where stablecoins are increasingly seen as essential tools amidst crypto volatility.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.