Tether surpasses Ether by market cap as ETH crashes to $1,510
In brief
- Tether USDt market cap reached $186 billion, surpassing Ether's $185 billion following a 5.2% crash
- Ether fell to $1,510 on Coinbase, hitting crucial support levels last visited in October 2023 and April 2025
- Stablecoins now represent nearly 15% of total crypto market cap, hitting record highs this cycle
- Sharplink and Bitmine accumulated ETH at depressed prices, signaling confidence from major holders
Stablecoin dominance accelerates
Tether USDt's $186 billion market capitalization now exceeds Ether's, reflecting a broader shift in market structure. Stablecoins currently represent almost 15% of the entire crypto market capitalization—a striking concentration for assets designed to minimize volatility. The growth is especially pronounced when compared to prior cycles. Stablecoin supply contracted more than 30% during the last bear market, but they're hitting record highs in the current one.
The flip underscores investor appetite for liquidity and reduced volatility amid broader market turbulence. Andri Fauzan Adziima, research lead at Bitrue Research Institute, said the development "highlights how the market still favors stability over ETH's volatility right now."
Accumulation amid weakness
Not all participants view the price action as capitulation. Sharplink bought 5,000 ETH on Thursday, marking its first purchase in eight months. Bitmine added 76,881 ETH last week at low prices, signaling that major Ether treasury holders view current levels as attractive.
Alvin Kan, chief operating officer of Bitget Wallet, told Cointelegraph that the stablecoin flip is a "notable milestone that highlights the explosive growth and dominance of stablecoins in today's crypto ecosystem." He added that deeper stablecoin liquidity supports higher trading volumes and ecosystem innovation.
Broader market shifts
The stablecoin surge isn't isolated to Tether. Circle's USDC flipped Ripple's XRP in market capitalization as XRP fell back towards $1, leaving the Ripple token with a $64 billion market cap compared with USDC's $73.6 billion.
The Ethereum ecosystem has navigated internal headwinds. The Ethereum Foundation experienced a 20% workforce reduction and several executive departures. A new nonprofit called Ethlabs launched this week with backing from key EF developers, researchers, and Ether treasuries Bitmine and Sharplink—a signal that core contributors remain committed to building despite organizational turbulence.
