Tether's USDT stablecoin briefly became the second-largest cryptocurrency by market capitalization after Ethereum fell to a yearly low on Friday. ETH's market cap dropped below $185 billion, while USDT remained near $186 billion, according to data showing ETH fell 5.2% over 24 hours to $1,510. The shift reflects growing stablecoin dominance, with stablecoins now accounting for almost 15% of the total cryptocurrency market capitalization as total stablecoin supply surpassed $300 billion.
Stablecoin Supply Surpasses $300 Billion Amid Market Shift
According to Andri Fauzan Adziima, head of research at Bitrue Research Institute, the shift clearly shows that the market currently prefers stability over volatility. The move highlights the accelerating growth of stablecoins, which now account for almost 15% of the total cryptocurrency market capitalization.
21Shares noted that during the previous bear market, stablecoin supply fell by more than 30%. This time, however, it is setting new records. The total supply of stablecoins has surpassed $300 billion and reached new highs. According to 21Shares, this is one of the strongest signs that stablecoins have become a defining use case for crypto and that demand for them is no longer tied only to market cycles.
Bitget Wallet COO Alvin Kan called the shift a significant milestone, pointing to the explosive growth and dominance of stablecoins. He said it reflects strong demand for reliable, liquid deposit and withdrawal tools during periods of market volatility. At the same time, he added, it is also a reminder that Ethereum must continue to offer compelling value if it wants to maintain its position.
SharpLink and Bitmine Accumulate ETH at Lower Prices
ETH has returned to key support levels last seen in October 2023 and April 2025. At the same time, the Ethereum ecosystem has faced internal changes after a series of executive resignations and a 20% reduction in Ethereum Foundation staff. This week, key Foundation developers launched a new nonprofit, Ethlabs, with support from the ETH treasuries of Bitmine and SharpLink.
Some market participants viewed ETH's decline as an opportunity. Treasury firm SharpLink bought the dip, making its first purchase in eight months with a 5,000 ETH acquisition. Bitmine, chaired by Tom Lee, is also accumulating ETH at lower prices, adding another 76,881 ETH last week.
USDC Overtakes XRP in Market Capitalization
A similar reshuffle took place further down the rankings. Circle's USDC stablecoin overtook Ripple's XRP token by market capitalization after XRP fell to $1, its lowest level since November 2024. As a result, XRP's market cap fell to $64 billion, compared with USDC's $73.6 billion.
FAQ
What caused USDT to briefly overtake Ethereum in market capitalization?
USDT briefly became the second-largest cryptocurrency by market cap after Ethereum fell to a yearly low on Friday. ETH's market cap dropped below $185 billion, while USDT remained near $186 billion, with ETH falling 5.2% over 24 hours to $1,510 according to SoSoValue.
How much ETH did institutional buyers accumulate during the price decline?
Treasury firm SharpLink made its first purchase in eight months with a 5,000 ETH acquisition. Bitmine, chaired by Tom Lee, added another 76,881 ETH last week as both firms accumulated ETH at lower prices.
