USDT has surpassed Ethereum in fully diluted valuation — a new milestone for stablecoins
According to CoinGecko, the fully diluted valuation (FDV) of Tether's USDT stablecoin has reached $191.5 billion, surpassing Ethereum's figure of $189.5 billion. This is a landmark moment, highlighting USDT's dominance in the digital asset market.
However, in terms of market capitalization, USDT still trails ETH: $186.1 billion versus $189.7 billion. The gap is only about $3.6 billion, indicating a rapid convergence of positions. FDV accounts for all tokens, including locked or unissued ones, while market capitalization reflects only the circulating supply.
Situation Analysis
This growth in USDT's FDV is driven by steady demand for stablecoins as a hedging and liquidity tool amid market volatility. Tether continues to increase issuance, maintaining its peg to the US dollar. Ethereum, on the other hand, faces pressure from competition with other blockchains and declining activity in DeFi.
From my professional perspective: USDT's lead in FDV is not just a statistical curiosity but a signal of capital redistribution in favor of stablecoins. If this trend continues, we may see USDT overtake Ethereum in market capitalization in the coming weeks, marking a historic event for the crypto industry.