Tether Overtakes Ethereum As Crypto's No. 2 Asset Amid Sharp Selloff
Tether briefly surpassed Ethereum as the second-largest cryptocurrency by market capitalization on Friday, after Ether's sharp selloff sent its price plummeting to $1,510.
The move marked a significant shift in the crypto landscape, with Tether's supply edging near $186 billion and Ether's market cap slipping below $185 billion.
The two assets had been neck-and-neck for some time, with their values differing by just over $400 million. However, as riskier tokens slid in value, investors increasingly turned to stablecoins like Tether, driving its supply towards record highs.
Analysts described the rotation as a textbook flight to safety, with Andri Fauzan Adziima of Bitrue Research Institute noting that the market still favors stability over Ether's volatility. Meanwhile, some investors saw opportunity in the downturn, with Sharplink and Bitmine both buying into Ether at discounted prices.