Stablecoins Crash Ether's Party: USDT Slides Into Second Place While ETH Hits the Floor 🚬

Tether's USDt ($USDT) overtook Ether ($ETH) by market capitalization on Friday, June 26, after a 5.2% drop in ETH over 24 hours pushed the second-ranked cryptocurrency to $1,510 on Coinbase and its market cap to roughly $184.4 billion, below USDt's approximately $186 billion, according to TradingView and CoinGecko data. The flip briefly made USDt the largest crypto asset by market cap before conditions settled.

"The stablecoin overtake really highlights how the market still favors stability over ETH's volatility right now," Andri Fauzan Adziima, research lead at Bitrue Research Institute, told Cointelegraph. Alvin Kan, chief operating officer of Bitget Wallet, called it a "notable milestone that highlights the 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."

Stablecoins now account for nearly 15% of total crypto market capitalization, according to 21Shares, which wrote on Thursday that supply had expanded to record highs this cycle despite contracting more than 30% in the previous bear market. "To us, that is the strongest evidence yet that stablecoins are one of crypto's defining use cases – demand that no longer depends on the cycle," 21Shares said. USDt's market share has climbed from 7% to 9% since mid-May, levels last seen at the low of the 2022 bear market. Overall stablecoin supply has eased from a recent peak of $322 billion in mid-May to about $313 billion, implying roughly $10 billion in redemptions over six weeks, even as Bitcoin ($BTC) and other majors corrected.

Circle's USDC ($USDC) also passed Ripple's XRP ($XRP) by market cap during the session as XRP slid toward $1, a level last seen in November 2024, leaving XRP at about $64 billion versus USDC's $73.6 billion. The ETH/BTC ratio has declined since mid-May, reflecting the slow pace of any broader altseason.

ETH's price is back at a long-term support zone previously visited in October 2023 and April 2025, per TradingView. The Ethereum Foundation has seen several executive departures and a 20% workforce reduction in recent months, while a new nonprofit called Ethlabs launched this week with backing from Ether treasuries Bitmine and Sharplink and involvement from former EF developers and researchers. Sharplink on Thursday made its first ETH purchase in eight months, buying 5,000 ETH, and Bitmine, chaired by Tom Lee, added 76,881 ETH last week.