USDT Briefly Dethrones Ethereum As Crypto’s No. 2 Asset

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.

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.