- USDT moved ahead of Ethereum after its market cap reached about $187.37 billion.
- Ethereum slipped to third as ETH’s decline narrowed the gap with dollar-backed USDT.
- Stablecoin supply growth pushed USDT near $188 billion, strengthening Tether’s lead.
USDT has overtaken Ethereum in cryptocurrency market capitalization rankings, marking one of the rarest shifts near the top of the digital asset market. The change was highlighted on June 6 by Tether CEO Paolo Ardoino, who shared screenshots of rankings showing USDT moving into second place behind Bitcoin.
USDT Edges Past Ethereum in Market Value
The images showed USDT with a market capitalization of about $187.37 billion, narrowly ahead of Ethereum at roughly $187.33 billion. Bitcoin remained far ahead in first place, with a market value above $1.19 trillion.
The move pushed Ethereum into third position, at least temporarily, after a prolonged market decline weighed on ETH. The difference between the two assets was narrow, but the change in ranking carried symbolic weight given that Ethereum has long held the second spot.
Unlike volatile crypto assets, USDT is designed to trade near $1. Its market capitalization rises mainly when more tokens enter circulation, not when the token price increases.
USDT Supply Growth Reshapes Crypto’s Top Rankings
USDT’s rise reflects a steady expansion in circulating supply throughout 2026. Demand for dollar-backed stablecoins has continued to grow across trading, payments, and cross-border transfers.
The token’s supply recently moved close to record highs near $188 billion, strengthening its lead within the stablecoin sector. That growth helped it close the gap with Ethereum as ETH weakened.
The development also followed earlier market commentary from Bloomberg Intelligence strategist Mike McGlone. He had suggested that Tether’s asset growth could allow its stablecoin to surpass Ethereum’s market value if ETH traded near $1,500.
Economist and longtime Bitcoin critic Peter Schiff also pointed to the trend. Schiff wrote on X that Tether’s market cap would soon surpass Ethereum’s and could eventually challenge Bitcoin’s market value.
“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,” Peter Schiff noted.
Stablecoins Cement Bigger Role In Crypto Rankings
The ranking change shows how stablecoins have moved beyond their early role as simple trading tools. They now represent one of the largest segments of the crypto market by value.
Under Ardoino’s leadership, Tether has also expanded beyond stablecoins into artificial intelligence, mining, tokenized gold products, and payment initiatives.
In summary, Ethereum could regain second place if ETH prices recover. For now, however, USDT’s move above Ethereum shows how dollar-backed assets have become central to crypto market structure.
Related: Tether CEO Outlines 2025 Plan: Bitcoin Mining, AI, and US Regulatory Compliance for USDT
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