Tether Briefly Dethrones Ethereum as Crypto's No. 2 Asset

Tether briefly surpassed Ethereum as the second-largest cryptocurrency by market capitalization on Friday, after a sharp selloff dragged ETH to its lowest price this year. The dollar-pegged token's supply edged near $186 billion, while Ether's market capitalization slipped below $185 billion.

The shift followed a 5.2% drop over 24 hours that sent ETH to $1,510 on Coinbase, a level last visited in October 2023 and April 2025. The two assets sat within roughly $400 million of each other.

Tether's value rises as new coins are issued rather than as prices climb, so its supply has swelled toward record highs through a downturn that has battered most other assets. Analysts cast the rotation as a textbook flight to safety.