Tether (USDT) overtook Ether (ETH) as the second-largest cryptocurrency by market value on Friday, after a sharp selloff dragged ETH to its lowest price of 2026.
Key Points:
- Tether's USDT briefly passed Ether by market cap, near $186 billion against roughly $185 billion.
- Ether sank about 5.2% over 24 hours to $1,510, its weakest level this year.
- Circle's USDC overtook XRP in the same rout as stablecoin supply pushed toward record highs.
Tether Overtakes Ether In Ranking
Ether's market capitalization slipped below $185 billion on Friday for the first time in months, while Tether's supply edged near $186 billion, lifting the dollar-pegged token into second place behind Bitcoin (BTC). The shift followed a 5.2% drop over 24 hours that sent ETH to $1,510 on Coinbase, a level last visited in October 2023 and April 2025. The two assets sat within roughly $400 million of each other.
The lead proved fleeting. ETH reclaimed second place near $189 billion within hours as dip buyers returned, even as fresh staff cuts and executive exits at the Ethereum Foundation kept sentiment fragile.
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Stablecoins Reflect Risk Aversion
The flip tracks steady demand for stablecoins, which keep drawing cash even as riskier tokens slide. Tether's value rises as new coins are issued rather than as prices climb, so its supply has swelled toward record highs through a downturn that has battered most other assets. Its appeal climbs when fear spreads.
Analysts cast the rotation as a textbook flight to safety. The flip shows the market still favors stability over Ether's volatility, said Andri Fauzan Adziima, research lead at Bitrue Research Institute.
Alvin Kan, chief operating officer at Bitget Wallet, called the flip a notable milestone for the sector. He added that deeper stablecoin liquidity tends to support higher trading volumes and broader innovation across the market. Ether, he said, must keep earning its rank.
Buyers Step In As Ether Slides
Not everyone read the drop as a warning. Sharplink, now the second-largest public Ether treasury, bought 5,000 ETH worth about $7.85 million on Thursday at an average cost near $3,609, its first purchase in eight months despite a paper loss close to $1.79 billion.
Bitmine, chaired by Tom Lee and holding about 5.67 million ETH, kept buying through the slump and described the moment as an early crypto spring, vowing steady accumulation through 2026. Circle's USDC (USDC) passed Ripple's XRP (XRP) in the same rout, ending near $73.6 billion against $64 billion as XRP eased toward $1.
The reshuffle echoed June 6, when Paolo Ardoino, Tether's chief executive, posted screenshots of an earlier short-lived flip before Ether won the rank back.
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