Tether Overtakes Ethereum as Second-Largest Crypto by Market Cap

Tether's USDT has surpassed Ethereum's ETH to become the second-largest cryptocurrency by market capitalization, according to CoinMarketCap data on June 26. This is not the first time Tether moved ahead of Ethereum, but it marks a significant shift in investor sentiment.

The increase in Tether's market capitalization was driven by expanded issuance rather than a rise in price. As market volatility increases, investors are moving funds from risk assets into stablecoins, lifting USDT supply in circulation.

Ethereum, on the other hand, has seen its market capitalization shrink as its price declined during the latest crypto market correction. Broader weakness across the crypto market, including Bitcoin, has fueled selling in altcoins and kept Ethereum under pressure.