Tether Overtakes Ethereum in Market Value Amid Crypto Sell-Off

Tether briefly overtook Ethereum as the second-largest cryptocurrency by market value on Friday, after a sharp selloff dragged ETH to its lowest price of the year. The dollar-pegged token's supply edged near $186 billion, lifting it into second place behind Bitcoin (BTC), while Ethereum's market capitalization slipped below $185 billion.

The shift followed a 5.2% drop over 24 hours that sent ETH to $1,510 on Coinbase, its weakest level this year, according to data from the exchange. The two assets sat within roughly $400 million of each other in terms of market capitalization before Ethereum reclaimed second place.

Analysts described the rotation as a 'textbook flight to safety,' with Tether's value rising due to increased demand for stablecoins rather than price appreciation. This trend has been ongoing, with Circle's USDC passing Ripple's XRP in the same rout and ending near $73.6 billion against $64 billion.