Tether Briefly Dethrones Ethereum As Crypto's No. 2 Asset
Tether briefly overtook Ethereum as the second-largest cryptocurrency by market value on Friday, after a sharp selloff sent Ether plummeting to its lowest price of the year. The dollar-pegged token's supply edged near $186 billion, surpassing ETH's market capitalization of roughly $185 billion.
The drop was significant, with Ether sinking about 5.2% over 24 hours to $1,510 on Coinbase, a level last visited in October 2023 and April 2025. This marked the first time in months that Ethereum's market capitalization slipped below $185 billion.
However, the lead was short-lived, as Ether reclaimed second place near $189 billion within hours as dip buyers returned. The Ethereum Foundation's recent staff cuts and executive exits have kept sentiment fragile.
The rotation highlights steady demand for stablecoins, which are drawing cash even as riskier tokens slide. 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.