ETH Crashes to $1,510 and Tether Becomes Second Largest Crypto by Market Capitalization

Ether dropped 5.2% in 24 hours to $1,510 on Friday, pushing its market cap below $185 billion and handing Tether sitting at $186 billion the number two spot in the entire crypto market. It is a milestone that would have seemed unthinkable just a year ago.

“The stablecoin overtake really highlights how the market still favors stability over ETH’s volatility right now,” .

ETH is now back at critical long term support levels last seen in October 2023 and April 2025.

Stablecoins Are Not Just a Safe Haven Anymore — They Are a Use Case

The flip is part of a much bigger picture. Stablecoins now represent almost 15% of the entire crypto market cap. Unlike previous bear markets where stablecoin supply contracted more than 30%, this cycle is seeing them hit record highs — a signal that demand for stablecoins no longer depends on the broader crypto cycle.

Meanwhile USDC also flipped XRP in market cap as XRP fell back toward $1 its lowest level since November 2024 dropping to a $64 billion market cap against USDC’s $73.6 billion.

Not Everyone Is Selling ETH

Despite the carnage, some are treating the crash as a buying opportunity. Ether treasury company Sharplink made its first ETH purchase in eight months on Thursday, picking up 5,000 ETH. Tom Lee’s Bitmine also added 76,881 ETH last week as it continues accumulating near multi-year lows.

The Ethereum ecosystem has been under pressure from staff cuts and leadership departures at the Ethereum Foundation, but a new non-profit called Ethlabs was launched this week by key developers and researchers, backed by Bitmine and Sharplink, signaling that long-term builders have not given up on the network.