Tether’s stablecoin USDt has officially surpassed Ether in market capitalization, becoming the second-largest cryptocurrency. The flip happened after ETH tumbled 5.2% over 24 hours, hitting $1,510 on Coinbase — its lowest price of the year.
Ether’s market cap dropped below $185 billion, while USDt sits at around $186 billion. It’s a stark shift. Stablecoins now represent nearly 15% of the entire crypto market cap.
“The stablecoin overtake really highlights how the market still favors stability over ETH’s volatility right now,” said Andri Fauzan Adziima, research lead at Bitrue Research Institute.
Bitget Wallet COO Alvin Kan called it a “notable milestone” that shows strong demand for reliable on- and off-ramps during volatile periods. He added that ETH needs to keep delivering compelling utility to maintain its position.
ETH is now back at crucial long-term support levels last seen in October 2023 and April 2025. The Ethereum ecosystem has faced turbulence of its own — several executive departures and a 20% workforce reduction at the Ethereum Foundation. A new nonprofit called Ethlabs was launched this week by key EF developers, backed by Bitmine and Sharplink.
Not everyone is bearish. Sharplink bought 5,000 ETH on Thursday, its first purchase in eight months. Bitmine, chaired by Tom Lee, added 76,881 ETH last week. Meanwhile, Circle’s USDC also flipped XRP in market cap, with XRP falling back toward $1.
21Shares noted that stablecoin supply contracted more than 30% in the last bear market but is hitting record highs now. “To us, that is the strongest evidence yet that stablecoins are one of crypto’s defining use cases – demand that no longer depends on the cycle.”
