Tether Briefly Tops Ethereum as Second-Largest Crypto Asset

Tether briefly overtook Ethereum as the second-largest cryptocurrency by market capitalization on Friday, but its lead was short-lived. The dollar-pegged token's value rose to near $186 billion, just above Ethereum's market cap of roughly $185 billion.

Ethereum suffered a sharp selloff, with its price dropping 5.2% over 24 hours to $1,510 on Coinbase, its weakest level this year. This slump pushed Ethereum below the $185 billion mark for the first time in months.

However, dip buyers quickly returned, and Ethereum reclaimed its second-place spot near $189 billion within hours of Tether's brief lead. Despite the volatility, analysts see the rotation as a textbook flight to safety, with investors favoring stability over Ethereum's volatility.