USDT has surpassed Ethereum in Fully Diluted Valuation: A new era of stablecoin dominance
The cryptocurrency market has witnessed a landmark event: the fully diluted valuation (FDV) of Tether's USDT stablecoin has reached $191.5 billion, surpassing Ethereum's $189.5 billion. This is the first time the largest stablecoin has overtaken the second-largest cryptocurrency by this metric.
Fully diluted valuation accounts for all tokens that will be issued in the future, including unallocated and locked ones. For USDT, this means that at full issuance, its value exceeds Ethereum's current valuation. Data from CoinGecko confirms that the gap is approximately $2 billion in Tether's favor.
However, in terms of market capitalization, USDT still lags behind ETH: $186.1 billion versus $189.7 billion. The difference is only $3.6 billion, indicating rapid convergence. Given the dynamics of recent months, it can be assumed that USDT may surpass Ethereum in this metric as well in the near future.
This trend reflects the growing role of stablecoins in the DeFi ecosystem and global settlements. Tether continues to increase its issuance, especially amid heightened demand from institutional investors and emerging markets. Ethereum, on the other hand, faces competition from other L1 networks such as Solana and BNB Chain, which is restraining its market cap growth.
Expert commentary: The growth of USDT's FDV is not just a statistical curiosity but a signal of a fundamental shift. Stablecoins are becoming not just a trading tool but an independent asset class that, in terms of liquidity and trust, is beginning to surpass traditional cryptocurrencies. If Tether continues to increase its issuance without losing transparency, we could see USDT in the top 3 by market capitalization as early as 2025.