Tether’s USDt stablecoin has overtaken Ether to become the second-largest cryptocurrency by market capitalization. The shift happened after Ether’s price fell to a yearly low of $1,510 on Coinbase, according to TradingView data.
Ether’s market cap dropped below $185 billion following a 5.2% price crash over 24 hours. This allowed USDt, with a market cap of about $186 billion, to move ahead. The change highlights how traders are leaning toward stability over Ether’s volatility right now, said Andri Fauzan Adziima, a research lead at Bitrue Research Institute.
Stablecoins are growing fast
The flip reflects broader growth in stablecoins. They now represent almost 15% of the entire crypto market’s value. During the last bear market, stablecoin supply shrank by more than 30%. This time around, it’s hitting record highs, according to a Thursday note from 21Shares.
Alvin Kan, chief operating officer of Bitget Wallet, called the flip a notable milestone. He said it underscores the dominance stablecoins have achieved in today’s crypto ecosystem. Kan also noted that deeper stablecoin liquidity supports higher trading volumes and innovation across the space.
Ethereum ecosystem under strain
Ether’s price has returned to crucial support levels, last seen in October 2023 and April 2025. The Ethereum ecosystem has faced pressure recently. Staff cuts at the Ethereum Foundation led to an executive exodus and a 20% reduction in workforce.
Still, not everyone is bearish. A new nonprofit called Ethlabs launched this week, backed by key developers and researchers from the foundation. It received treasury support from Bitmine and Sharplink, two Ether-holding companies.
Some buyers see opportunity
Sharplink made its first Ether purchase in eight months, buying 5,000 ETH on Thursday. Tom Lee’s Bitmine also added 76,881 ETH last week, accumulating at these low prices.
Meanwhile, Circle’s USDC stablecoin flipped Ripple’s XRP in market cap. XRP fell back toward $1, its lowest level since November 2024, pushing its market cap to $64 billion. USDC’s market cap stood at $73.6 billion.
