ETH Plunges to $1.5K as Tether's USDt Claims Second Spot in Crypto Market Cap Rankings
Currently, Ether prices have retreated to critical long-term support zones that were last seen in October 2023 and April 2025.
The Tether stablecoin USDt has claimed the position of second-largest cryptocurrency by market capitalization following Ether's descent to an annual low on Friday.
Following a sharp 5.2% decline over a 24-hour period, Ether's market capitalization slipped beneath the $185 billion threshold, with the asset plummeting to $1,510 on Coinbase, as reported by TradingView. This downturn enabled USDt, boasting a $186 billion market capitalization, to overtake the cryptocurrency.
"[The] stablecoin overtake really highlights how the market still favors stability over ETH's volatility right now," Andri Fauzan Adziima, research lead at Bitrue Research Institute, told Cointelegraph.
This shift demonstrates the rapid expansion of stablecoins, which presently account for nearly 15% of the total cryptocurrency market capitalization. While stablecoin supply contracted by more than 30% during the previous bear market, they're reaching all-time highs during this cycle, 21Shares noted on Thursday, stating:
"To us, that is the strongest evidence yet that stablecoins are one of crypto's defining use cases – demand that no longer depends on the cycle."
Speaking to Cointelegraph, Alvin Kan, chief operating officer of Bitget Wallet, described the flip as a "notable milestone that highlights the explosive growth and dominance of stablecoins in today's crypto ecosystem."
"It demonstrates strong demand for reliable, liquid on- and off-ramps during periods of volatility, while serving as a reminder that ETH must continue delivering compelling utility and narrative momentum to maintain its position."
According to Kan, this development bodes well for the wider market, given that increased stablecoin liquidity facilitates greater trading volumes and drives ecosystem innovation.
Currently, ETH prices have returned to vital support levels that were previously tested in October 2023 and April 2025.
Recent pressures on the Ethereum ecosystem have intensified following personnel reductions at the Ethereum Foundation, which included an executive departure wave and a 20% reduction in workforce.
Nevertheless, a newly formed non-profit organization named Ethlabs was established this week by prominent EF developers and researchers and is supported by Ether treasuries Bitmine and Sharplink.
Not all are bearish
Several entities have viewed Ether's downturn as a buying opportunity.
Ether treasury company Sharplink seized the opportunity to buy the dip, executing its first purchase in eight months by acquiring 5,000 ETH on Thursday. Additionally, Tom Lee's Bitmine has been steadily accumulating at these reduced prices, purchasing an additional 76,881 ETH last week.
In other developments, Circle's USDC (USDC) has also overtaken Ripple's XRP (XRP) in market capitalization as XRP retreated back toward $1, marking its lowest level since November 2024, which led to a market capitalization drop to $64 billion compared to USDC's $73.6 billion.