USDT Tops Ether by Market Cap as ETH Falls to $1,510

Tether’s USDT became the second-largest crypto by market capitalization on Friday after ether’s price fell 5.2% to $1,510 over a 24-hour period. The slide reduced ether’s market value to below $185 billion while USDT’s valuation reached roughly $186 billion.

Exchange data showed ETH trading near $1,510 on major platforms as the sell-off lowered ether’s market cap enough for the stablecoin to overtake it. The shift occurred during a day of increased volatility across cryptocurrency markets.

Industry data show stablecoins now represent nearly 15% of total cryptocurrency market capitalization. Stablecoin supply, which contracted by more than 30% during the previous bear market, is reaching record highs, according to available figures.

Andri Fauzan Adziima, research lead at Bitrue Research Institute, described the overtake as showing that ‘the market still favors stability over ETH’s volatility right now.’ Alvin Kan, chief operating officer of Bitget Wallet, characterized the flip as ‘a notable milestone,’ adding it reflects ‘explosive growth and dominance of stablecoins in today’s crypto ecosystem.’ Kan said deeper stablecoin liquidity can support higher trading volumes and further ecosystem development.

Ethereum’s price is currently at support levels last seen in October 2023 and April 2025. The Ethereum ecosystem has experienced recent internal changes, including several executive departures and a workforce reduction of about 20% at the Ethereum Foundation. A new nonprofit, Ethlabs, was formed by former foundation developers and researchers and is backed by ether treasuries from Bitmine and Sharplink.

Some institutional holders increased ether positions during the pullback. Sharplink purchased 5,000 ETH after an eight-month pause, and Bitmine reported adding 76,881 ETH in the past week.

In related market moves, Circle’s USDC rose to about $73.6 billion in market capitalization and exceeded Ripple’s XRP, which stood near $64 billion as XRP moved toward $1. Stablecoins continue to serve as a major source of on- and off-ramps and liquidity in the market while ether’s price trajectory and developer ecosystem changes remain focal points for investors and traders.