USDT Overtakes Ether as Second-largest Cryptocurrency
BITmarkets Team
Jun 27, 2026
Ether fell 5.2% over the past 24 hours, dropping to around $1,510 on Coinbase, according to TradingView. The sell-off reduced Ethereum’s market capitalization to below $185 billion, allowing USDt, with a market value of approximately $186 billion, to move into second place.
According to Andri Fauzan Adziima, research lead at Bitrue Research Institute, the shift reflects current investor sentiment. “[The] stablecoin overtake really highlights how the market still favors stability over ETH’s volatility right now,” he told Cointelegraph.
The milestone also highlights the rapid expansion of stablecoins, which now account for nearly 15% of the total cryptocurrency market capitalization. Unlike the previous bear market, when stablecoin supply contracted by more than 30%, supply has continued reaching record highs during the current downturn.
In a report released Thursday, 21Shares wrote: “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.”
Stablecoin growth signals market shift
Industry participants view USDt’s rise above Ether as another sign of the growing importance of stablecoins within the digital asset ecosystem. Alvin Kan, chief operating officer of Bitget Wallet, described the event as a significant moment for the market.
“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 added that stronger stablecoin liquidity ultimately benefits the broader crypto market by supporting higher trading volumes and encouraging further ecosystem development.
Meanwhile, Ether has returned to long-term support levels previously seen in October 2023 and April 2025. The Ethereum ecosystem has also experienced notable organizational changes in recent months, including several executive departures and a workforce reduction of roughly 20% at the Ethereum Foundation.
At the same time, several former Ethereum Foundation developers and researchers launched a new nonprofit organization called Ethlabs, backed by Ether treasury companies Bitmine and SharpLink.
Institutional buyers continue accumulating Ether
Despite the recent decline, some institutional investors have used the price weakness as an opportunity to increase their holdings. Ether treasury firm SharpLink made its first ETH purchase in eight months, acquiring 5,000 ETH on Thursday. Bitmine, chaired by Tom Lee, also expanded its position by purchasing an additional 76,881 ETH over the past week.
The market reshuffle extended beyond Ether. Circle’s USDC stablecoin also overtook XRP in market capitalization after XRP declined toward $1, its lowest price since November 2024. As a result, USDC now holds a market capitalization of approximately $73.6 billion, surpassing XRP’s $64 billion.
Sources:
https://cointelegraph.com/news/tether-stablecoin-flips-ether-by-market-cap-as-eth-routs-to-15k
https://x.com/21shares/status/2070062259372536049
