Tether's USDT Briefly Flips Ethereum by Market Cap to $186 Billion, First Time in 8 Years

According to market data, Tether's USDT briefly exceeded Ethereum by market cap to $186.06 billion recently, surpassing ETH's $185.66 billion valuation for the first time in roughly eight years. The crossover occurred as ETH traded near $1,500 to $1,560, compressing its total valuation even as Tether's token supply continued expanding.

The mechanics reflected divergent trends: USDT's market cap increased through fresh token issuance driven by surging onchain dollar liquidity demand, while ETH's valuation declined due to price pressure. Ether subsequently reclaimed second place as prices stabilized, but the episode underscored stablecoins' growing dominance, with the broader stablecoin market having surpassed $320 billion.