Tether’s USDT has surpassed Ethereum in market capitalization, marking a major milestone for the crypto industry. USDT’s circulating supply reached around US$186 billion, slightly higher than Ethereum’s market value of about US$186.3 billion. The crossover happened as ETH traded between US$1,500 and US$1,600 during a broader market decline.
Why USDT Overtook Ethereum
Unlike Ethereum, whose market capitalization depends on the price of ETH, Tether’s market cap increases whenever new USDT tokens are issued to meet demand. As more investors seek dollar-backed assets in the crypto market, the supply of USDT continues to expand.
By mid-2026, Tether said it held more than US$193 billion in reserves to back USDT. The company also reported profits of over US$10 billion in 2025, making it one of the most profitable companies in the financial industry. Today, USDT accounts for roughly 70% of the global stablecoin market.
Ethereum Loses Market Share
Ethereum’s share of the overall crypto market has reportedly dropped below 10%, compared with around 18% to 20% in previous years.
The fact that a stablecoin is now worth more than Ethereum highlights a shift in investor preferences. Rather than chasing higher-risk assets, many investors are choosing stable, dollar-pegged tokens to protect their capital during uncertain market conditions.
What It Means for Investors
Analysts believe this milestone could signal the start of a “stablecoin season,” where more money entering the crypto market remains in stablecoins instead of flowing into volatile cryptocurrencies.
With US$186 billion worth of USDT in circulation, stablecoins could become a significant source of buying power if market sentiment improves.
However, investors are still watching Tether’s reserve backing and regulatory developments. Although the company has increased transparency over its reserves, its large size continues to attract attention from regulators worldwide.
Despite this milestone, Ethereum remains the leading blockchain for decentralized applications, smart contracts, decentralized finance (DeFi), and NFTs. Even so, USDT’s rise above Ethereum suggests that, for now, investors are placing greater importance on liquidity and stability than on growth and innovation.
