Stablecoin USDT surpasses Ethereum in market capitalization: ETH plunges to $1510
The cryptocurrency market has experienced a landmark reshuffle: Tether's stablecoin USDT temporarily claimed the second spot by market capitalization, surpassing Ethereum. This occurred amid a sharp drop in ETH to a yearly low of $1,510 within a day. Ethereum's market cap fell below $185 billion, while USDT's hovered near $186 billion.
A 5.2% decline in ETH's price over the past 24 hours served as the catalyst for this historic event. Ethereum, which had long held the position as the second-largest cryptocurrency, ceded its place to a stablecoin, signaling profound shifts in market sentiment among participants.
Market Chooses Stability
This reshuffle is a clear confirmation that, under current conditions, investors are prioritizing stability over volatility. Stablecoins now account for nearly 15% of the total cryptocurrency market capitalization, and their aggregate supply has exceeded $300 billion, hitting new all-time highs. Unlike the previous bear cycle, when stablecoin supply contracted by over 30%, we are now witnessing the opposite trend.
This suggests that stablecoins have become not just a hedging tool but a key element of market infrastructure. Demand for them is no longer cyclical—it is driven by a genuine need for reliable and liquid means of capital entry and exit.
Bitget Wallet COO Alvin Kan rightly noted that this is an important milestone, highlighting the explosive growth of stablecoin dominance. However, he also reminded that Ethereum must continue to offer compelling value to users to maintain its position.
Not Everyone Is Bearish
ETH's price has returned to key support levels that the market last tested in October 2023 and April 2025. Despite internal upheavals in the ecosystem, including executive resignations and a 20% staff reduction at the Ethereum Foundation, major players see this as an opportunity. For instance, treasury company Sharplink bought 5,000 ETH during the dip—its first purchase in eight months. Meanwhile, Bitmine, chaired by Tom Lee, accumulated an additional 76,881 ETH over the past week.
Interestingly, a similar reshuffle occurred lower in the rankings: Circle's stablecoin USDC overtook XRP after the latter fell to its lowest since November 2024—around $1. XRP's market cap stood at $64 billion compared to USDC's $73.6 billion.
My take: The market is clearly signaling that, in times of uncertainty, capital flows to safe havens. However, active ETH purchases by large holders hint that a bottom may be near. The question remains whether Ethereum can restore investor confidence amid internal reforms and external pressure. For now, stablecoins are winning the battle for capital, but the war for dominance in the crypto industry is far from over.