Tether’s USDT briefly tops Ethereum in market-cap flip

Tether’s USDT market capitalization briefly exceeded Ethereum’s, marking the first time in nearly eight years that USDT topped ETH in market value. The crossover occurred after Ethereum’s market cap fell to roughly $185 billion while USDT’s market cap held around $187 billion during recent downward pressure across digital assets.

The change unfolded over recent weeks as the broader crypto market lost value. Market data show about $400 billion has been withdrawn from the crypto market in the current cycle. At one point the stablecoin sector contracted by more than $7 billion in under 21 days before stablecoin balances recovered and USDT’s market cap climbed above Ethereum’s.

On-chain measures for Ethereum-based decentralized finance also declined. Ethereum’s total value locked fell to about $36 billion, reflecting reduced capital committed to smart-contract platforms. The ETH/BTC trading pair has traded in a downtrend for nearly eight weeks while Bitcoin’s market share remained near the 60 percent level.

Stablecoins serve as a store of value, a common trading pair and a settlement asset on exchanges. Those practical uses support demand for USDT when traders seek liquidity and immediate usability during periods of lower risk appetite.

Data show the market-cap flip was temporary, with values shifting as capital flows changed. Movements in USDT and ETH market caps tracked broader withdrawals from crypto markets and fluctuating stablecoin supplies. Market participants monitored the event across trading desks as an indicator of recent capital flows and on-chain activity.