USDT Overtakes Ethereum to Become No. 2 Crypto Asset by Market Cap

USDT has edged past Ethereum to rank as the second-largest cryptocurrency by market capitalization, a rare shake-up at the top of the digital-asset leaderboard. Tether CEO Paolo Ardoino highlighted the move on June 6, posting screenshots of market rankings showing USDT in second place behind Bitcoin. The figures showed USDT at about $187.37 billion, narrowly ahead of Ethereum at roughly $187.33 billion. Bitcoin remained firmly in first place with a market value above $1.19 trillion. Ethereum's slip to third comes after an extended period of weakness in ETH, which helped compress the gap with the dollar-backed stablecoin. Unlike volatile cryptocurrencies, USDT is designed to trade near $1, so its market cap typically expands when more tokens enter circulation rather than from price appreciation. USDT's advance has been driven by steady growth in circulating supply throughout 2026, supported by continued demand for dollar-backed stablecoins across trading, payments, and cross-border transfers. Supply has recently approached record levels near $188 billion, reinforcing Tether's lead in the stablecoin market and allowing USDT to close in as ETH softened. The shift aligns with earlier commentary from Bloomberg Intelligence strategist Mike McGlone, who said Tether's asset growth could lift USDT above Ethereum if ETH traded near $1,500. Economist and longtime Bitcoin critic Peter Schiff also pointed to the trend, writing on X that Tether's market cap would soon exceed Ethereum's and could eventually challenge Bitcoin's. "The market cap of Tether will soon surpass the market cap of Ethereum. It will eventually surpass the market cap of Bitcoin, too. The only question is how long it will take," Schiff wrote. The ranking change underscores how stablecoins have evolved beyond their original role as trading utilities to become one of the largest segments of the crypto market by value. Under Ardoino, Tether has also broadened its focus beyond stablecoins into artificial intelligence, mining, tokenized gold products, and payment initiatives. Ethereum could reclaim the No. 2 spot if ETH prices rebound. For now, USDT's move above Ethereum highlights the growing influence of dollar-backed assets in shaping crypto market structure. Disclaimer: This content is for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for losses resulting from the use of any content, products, or services mentioned. Readers should exercise caution before taking actions related to the company.