The crypto rankings experienced a rare shift on June 26. Tether's USDT briefly overtook Ether in capitalization, becoming the second largest cryptocurrency on the market behind Bitcoin. This reversal does not come from a rise in the price of USDT, but from Ethereum's sharp fall towards its 2026 low.
In brief
- USDT briefly overtook Ether with over $186 billion in capitalization.
- Ethereum fell near $1,510, its 2026 low.
- The progression of stablecoins reveals a crypto market that has become more defensive.
USDT briefly overtakes Ethereum crypto
USDT reached a capitalization close to $186.06 billion. At the same time, that of Ether fell to around 185.66 billion. The Tether stablecoin thus temporarily occupied second place in the crypto ranking. A scenario that some observers were already considering when Ethereum's place began to seem less solid.
The crossing remained narrow. As of June 27, Ether had recovered a capitalization close to $190 billion thanks to a rebound in its price. The USDT remained around 186 billion, without major variation in its unit value.
This difference recalls an essential particularity. The capitalization of Ethereum directly depends on the price of ETH. That of USDT evolves mainly according to the number of tokens in circulation, since each unit seeks to maintain a value close to one dollar.
The overshoot therefore does not mean that investors have suddenly valued Tether as a superior technological blockchain to Ethereum. Rather, it shows digital dollars gaining prominence while volatile crypto assets decline.
Ethereum Falls to 2026 Low
Ether fell near $1,510 on Coinbase, its lowest level of the year. The drop reached around 5.2% over twenty-four hours and almost 9% over a week. It was enough to bring its capitalization below that of USDT.
The correction becomes even more striking when compared to the August 2025 high. At that time, ETH was trading around $4,946. The decline now exceeds 68%, bringing the price towards areas observed in 2023 and April 2025.
Ethereum, however, retains significant activity in decentralized finance, stablecoins and tokenization. But the crypto market does not automatically reward the use of a network. Demand for its token also depends on the economic context, speculation and investor confidence.
This weakness doesn't just affect Ether. It weighs on all altcoins, which are often more sensitive to capital outflows than Bitcoin. When risk increases, investors frequently favor cash or assets considered more defensive.
Stablecoins move up the crypto rankings
USDT is not the only stablecoin to have benefited from the decline. Circle’s USDC has also surpassed XRP in capitalization. USDC was worth nearly $74 billion, compared to around $65 billion for XRP after it plummeted toward the dollar.
Again, stablecoins have not seen a dramatic rise in price. Their value remained close to one dollar. It was competing crypto assets that fell, allowing stable digital currencies to gain places.
This progression also reflects a real growth in their offering. The stablecoin market hit new record highs in 2026, even as several major cryptocurrencies lost value. USDT maintains the top spot, while USDC gains ground in onchain payments and transactions.
Stablecoins now represent a significant portion of total crypto capitalization. They serve as a temporary reserve for traders, a means of settlement in DeFi, and an international transfer tool. Their demand therefore no longer depends solely on periods of speculative euphoria.
For Ethereum, the challenge now is to turn its technical activity into sustainable demand for ETH. For Tether, the challenge will be to maintain confidence around its reserves and its anchoring to the dollar. In both cases, this episode confirms that stablecoins are no longer simple secondary tools. They now occupy the center of the crypto market.
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