Tether Dethrones Ethereum as Second-Largest Crypto
Tether's (USDT) market capitalization briefly surpassed Ethereum's (ETH) on Friday, making it the second-largest cryptocurrency by market value. This came after a sharp selloff sent ETH prices plummeting to $1,510, their lowest level in over two years.
The drop of 5.2% over 24 hours marked a significant shift in the crypto market, with USDT's supply edging near $186 billion and ETH's slipping below $185 billion. However, this lead was short-lived, as dip buyers returned and ETH reclaimed its second-place spot within hours.
Analysts attribute the rotation to a 'textbook flight to safety,' with investors favoring stability over volatility. Andri Fauzan Adziima, research lead at Bitrue Research Institute, noted that the market still values stability above Ether's price fluctuations.
Not everyone views the drop as a warning sign, though. Some investors, like Sharplink and Bitmine, saw the opportunity to buy into ETH and have been accumulating it through the slump.