Stablecoins take the crown: USDT surpasses Ethereum in market cap amid ETH crash to $1510
The cryptocurrency market is once again demonstrating a shift in priorities. Tether's stablecoin USDT has temporarily taken the second spot in the ranking of the largest digital assets by market capitalization. The reason is a sharp drop in the price of Ethereum (ETH) to a yearly low around $1510. ETH's market cap fell below the $185 billion mark, while USDT's indicator held near $186 billion.
The collapse of the second-largest cryptocurrency amounted to 5.2% in a day. This event not only reshuffled the top 10 but also highlighted a fundamental trend: in times of uncertainty, the market is increasingly fleeing to the "safe haven" of stablecoins. The share of stablecoins in the total crypto market capitalization is already approaching 15%, and this is not the limit.
Analysts note that the current bear cycle is fundamentally different from previous ones. Last time, the supply of stablecoins decreased by more than 30%, but now, on the contrary, it is updating historical highs. The total supply of stablecoins has already exceeded $300 billion. This is a powerful signal: demand for liquid and reliable instruments for entering and exiting the market no longer depends on the bull or bear cycle. Stablecoins have become an independent and defining asset class.
The Chief Operating Officer of Bitget Wallet called this moment an important milestone, emphasizing the explosive growth of stablecoin dominance. According to him, this not only indicates high demand for reliable ways to move capital during periods of volatility but also serves as a reminder: Ethereum must offer compelling utility to maintain its position.
Ether finds support, but not everyone is bearish
The price of ETH has returned to key support levels that the market last saw in October 2023 and April 2025. The Ethereum ecosystem is undergoing internal changes amid leadership resignations and a 20% reduction in the Ethereum Foundation's staff. This week, key foundation developers launched a new non-profit organization, Ethlabs, with support from the ETH treasuries of Bitmine and Sharplink.
Interestingly, some market participants perceived the drop in ETH as an opportunity. Treasury company Sharplink bought coins during the dip, making its first purchase in eight months — 5,000 ETH. Bitmine, chaired by Tom Lee, is also accumulating coins at low prices, adding another 76,881 ETH over the past week.
A similar reshuffling occurred lower in the ranking. Circle's stablecoin USDC surpassed Ripple's XRP token in market capitalization after XRP fell to $1 — a low not seen since November 2024. As a result, XRP's market cap stood at $64 billion compared to USDC's $73.6 billion.
My expert opinion: The reshuffling of power in the top 10 is not just a speculative episode, but a clear signal from the market. Investors are voting with their feet (and capital) for predictability and liquidity, rather than volatile promises of future innovations. Until Ethereum offers a compelling catalyst for growth, stablecoin dominance will only strengthen, and ETH risks getting stuck in the role of an "infrastructure investment" without immediate returns.