Stablecoins Just Outflanked ETH — The Chart Now Has More Anchors Than Sails ⛵

Tether's USDt overtook Ether by market capitalization on Friday after $ETH fell 5.2% over 24 hours to $1,510 on Coinbase, according to TradingView, extending a slide that pushed the second-ranked cryptocurrency's market cap below $185 billion. USDt, with a market capitalization of $186 billion, now sits as the second-largest crypto asset, ahead of Ether, per CoinGecko data.

Andri Fauzan Adziima, research lead at Bitrue Research Institute, told Cointelegraph the stablecoin overtake "really highlights how the market still favors stability over ETH's volatility right now." The flip comes as stablecoins collectively represent almost 15% of total crypto market capitalization, with 21Shares writing on Thursday that "stablecoins are one of crypto's defining use cases – demand that no longer depends on the cycle," even as stablecoin supply contracted more than 30% during the last bear market.

Alvin Kan, chief operating officer of Bitget Wallet, called the milestone a sign of "explosive growth and dominance of stablecoins in today's crypto ecosystem," adding that it "demonstrates strong demand for reliable, liquid on- and off-ramps during periods of volatility, while serving as a reminder that ETH must continue delivering compelling utility and narrative momentum to maintain its position." Kan said the development is positive for the broader market, as deeper stablecoin liquidity supports higher trading volumes and ecosystem innovation.

Ether's price weakness has returned the asset to long-term support levels last visited in October 2023 and April 2025, and follows several executive departures plus a 20% workforce reduction at the Ethereum Foundation. A new nonprofit called Ethlabs was launched this week by key EF developers and researchers, with backing from Ether treasuries Bitmine and Sharplink. Sharplink also bought 5,000 ETH on Thursday, its first purchase in eight months, while Bitmine, chaired by Tom Lee, added 76,881 ETH last week.

In a parallel move, Circle's USDC surpassed Ripple's XRP by market capitalization as XRP slid back toward $1, its lowest level since November 2024. XRP's market cap stands at $64 billion compared with USDC's $73.6 billion, marking another stablecoin flip during a week of broad altcoin weakness.