Stablecoin demand surges amid volatility, pushing Tether’s market cap above Ethereum’s for the first time as ETH tests critical support levels.
Tether’s market capitalization has surpassed Ethereum’s, reaching $73.6 billion compared to ETH’s $64 billion, as Ether prices fell to $1.5K. The shift reflects growing investor preference for stablecoins during market turbulence, providing liquidity and risk mitigation.
ETH has struggled recently, hitting support levels last seen in October 2023 and April 2025. The Ethereum Foundation’s workforce reduction and executive departures added pressure, though new initiatives like Ethlabs aim to stabilize the ecosystem.
Some institutional players, including Sharplink and Bitmine, capitalized on the dip, purchasing 5,000 ETH and 76,881 ETH respectively, signaling confidence in a potential rebound.