Tether overtakes Ethereum as #2 crypto by market cap

The stablecoin Tether (USDT) has overtaken Ethereum (ETH) to become the second-largest cryptocurrency by market capitalization, a milestone that underscores a significant shift in market dynamics toward stability amid volatility. The change occurred on Friday, June 26, 2026, as Ether's price fell sharply.

Ether's market capitalization dropped below $185 billion following a 5.2% price decline over 24 hours, with the asset tumbling to $1,510 on major exchanges. This allowed Tether, with a market cap of approximately $186 billion, to move into the second-place ranking behind Bitcoin. The development highlights the explosive growth of stablecoins, which now represent nearly 15% of the entire cryptocurrency market capitalization.

Analysts point to the move as a reflection of current investor sentiment favoring stability. "The stablecoin overtake really highlights how the market still favors stability over ETH's volatility right now," said Andri Fauzan Adziima, research lead at Bitrue Research Institute. Alvin Kan, chief operating officer of Bitget Wallet, described the flip as a notable milestone demonstrating strong demand for reliable liquidity during volatile periods. He added...