Tether Dethrones Ethereum as Crypto's No. 2 Asset
Tether (USDT) briefly surpassed Ethereum (ETH) as the second-largest cryptocurrency by market capitalization on Friday, following a sharp decline that sent ETH to its lowest price this year. The dollar-pegged token's supply edged near $186 billion, while ETH's market cap slipped below $185 billion for the first time in months.
The shift was short-lived, as dip buyers returned and ETH reclaimed second place near $189 billion within hours. However, the incident highlights steady demand for stablecoins, which have swelled toward record highs despite a downturn that has battered most other assets.
Analysts view the rotation as a 'textbook flight to safety', with Tether's appeal increasing when fear spreads. The market still favors stability over ETH's volatility, according to Andri Fauzan Adziima, research lead at Bitrue Research Institute.