Tether Surpasses Ethereum's Market Cap, Analysts Expect Stablecoin Boom
Tether's market capitalization briefly surpassed Ethereum's for the first time in nearly eight years. According to data, Tether (USDT) climbed to around $187.05 billion while Ethereum (ETH) dipped to about $186.263 billion. However, this reversal proved short-lived as Ethereum recovered its second spot with a market cap of near $188 billion.
The market has been experiencing a broad retreat from risk assets, and investors are turning towards stablecoins for liquidity. Analysts believe that the shift in capital allocation is indicative of an upcoming 'stablecoin season' in 2026. Mike McGlone, senior strategist at Bloomberg Intelligence, points out that capital is gravitating towards stability and utility, making stablecoins attractive as a store of value and settlement asset.
Peter Schiff, a well-known Bitcoin critic, predicted that Tether's market cap would soon top Ethereum and eventually Bitcoin (BTC). Ethereum's total value locked has fallen to just $36 billion, indicating cooling on-chain activity alongside its price. The stablecoin market has contracted by more than $7 billion in under 21 days, while investors have pulled about $400 billion from crypto.