Tether’s USDT stablecoin briefly became the second-largest cryptocurrency by market capitalization after Ethereum fell to a yearly low on Friday. ETH’s market cap dropped below $185 billion, while USDT remained near $186 billion.
According to SoSoValue, ETH fell 5.2% over 24 hours to $1,510. The decline allowed USDT to temporarily move into second place among the world’s most valuable cryptocurrencies.
The Market Chooses Stability
According to Andri Fauzan Adziima, head of research at Bitrue Research Institute, the shift clearly shows that the market currently prefers stability over volatility.
The move also highlights the accelerating growth of stablecoins, which now account for almost 15% of the total cryptocurrency market capitalization. 21Shares noted that during the previous bear market, stablecoin supply fell by more than 30%. This time, however, it is setting new records.
According to 21Shares, this is one of the strongest signs that stablecoins have become a defining use case for crypto and that demand for them is no longer tied only to market cycles.
Bitget Wallet COO Alvin Kan called the shift a significant milestone, pointing to the explosive growth and dominance of stablecoins. He said it reflects strong demand for reliable, liquid deposit and withdrawal tools during periods of market volatility. At the same time, he added, it is also a reminder that Ethereum must continue to offer compelling value if it wants to maintain its position.
Not Everyone Is Bearish On ETH
ETH has returned to key support levels last seen in October 2023 and April 2025. At the same time, the Ethereum ecosystem has faced internal changes after a series of executive resignations and a 20% reduction in Ethereum Foundation staff.
This week, key Foundation developers launched a new nonprofit, Ethlabs, with support from the ETH treasuries of Bitmine and SharpLink.
Some market participants viewed ETH’s decline as an opportunity. Treasury firm SharpLink bought the dip, making its first purchase in eight months with a 5,000 ETH acquisition. Bitmine, chaired by Tom Lee, is also accumulating ETH at lower prices, adding another 76,881 ETH last week.
A similar reshuffle took place further down the rankings. Circle’s USDC stablecoin overtook Ripple’s XRP token by market capitalization after XRP fell to $1, its lowest level since November 2024. As a result, XRP’s market cap fell to $64 billion, compared with USDC’s $73.6 billion.
