Tether's USDT Flips Ether in Market Cap as Stablecoin Climbs to $186 Billion

Tether’s USDT stablecoin briefly overtook ether (ETH) to become the second-largest cryptocurrency by market capitalization, reaching approximately $186.06 billion compared to ether’s $185.66 billion. This rare flip, the first in roughly eight years, was primarily driven by continued stablecoin issuance and a decline in ether’s price.

At the time of the flip, ether was trading in the $1,500 to $1,560 range, compressing its total valuation while Tether’s supply kept expanding. The mechanics are straightforward: USDT is pegged one-to-one to the U.S. dollar, so its market cap directly reflects the number of tokens in circulation. As analysts noted, ether’s market cap was compressed by price, while USDT’s expanded through issuance.

Ether subsequently reclaimed second place as prices firmed, but the episode highlights the growing dominance of stablecoins. The broader stablecoin market has swelled past the $320 billion threshold, underscoring the central role of dollar-pegged tokens in crypto trading and settlement. Tether’s USDT alone has continued to add billions in fresh supply over the past year, with its market share hovering near 58-59%.

Tether also announced that it had moved $100 billion in value across different networks in 525 days, driven by growing use cases including human and agentic adoption. For ether, however, the brief flip is a reminder of its prolonged valuation decline, as capital flows into dollar-denominated tokens for utility and safety while speculative assets lose ground.

Source: https://news.bitcoin.com/tether-usdt-flips-ether-market-cap-186-billion/