On the evening of June 25, Ethereum dropped to $1,510, losing about 15% in a single day. Amid the altcoin’s weakness, Tether’s USDT▲$0.9985 briefly overtook it.
Ethereum’s (ETH) market cap fell to roughly $182B, allowing USDT to temporarily take the second spot among the largest cryptocurrencies.
Hot topic: Bitcoin Recovery Could Stretch Into August Even if Bottom Holds
By the morning of June 26, ETH▼$1,548.95 had recovered to $1,560, reclaiming its position with a $190B market cap against Tether’s $186B. At the time of publication, the altcoin trades at roughly $1,550, down 5.5% on the day.
However, by fully diluted valuation, Ethereum still trails USDT: $190B versus $193B. The total crypto market cap briefly fell below $2T for the first time since September 2024, before recovering to $2.1T.
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‘Stability Beats Volatility’ — Why USDT Overtook ETH
Bitrue Research Institute Head of Research Andri Fauzan Adjima noted:
“A stablecoin overtaking ETH really highlights how much the market is currently favoring stability over Ethereum’s volatility.”
21Shares added that stablecoin supply has reached record highs–unlike the previous bear market, when it contracted by 30%.
Bitget Wallet COO Alvin Kan called it “a notable milestone underscoring the explosive growth and dominance of stablecoins in today’s crypto ecosystem.” He also said it’s a positive signal for the market: deeper stablecoin liquidity supports high trading volumes and ecosystem innovation.
ETH’s Drop: Liquidations, ETF Outflows, and ‘Extreme Fear’
Ethereum’s fall came amid a broader crypto market rout. Bitcoin (BTC) dropped below $58K, losing more than 10% from the start of the week. The Fear and Greed Index fell to 13–”extreme fear” territory.
Over the past 24 hours, exchanges liquidated positions totaling more than $1.1B across nearly 150K traders, with about $850M from long positions.
Outflows from the U.S. spot bitcoin ETFs on June 25 reached nearly $700M, with Ethereum ETFs losing more than $80M. This could make the current week the seventh consecutive week of net outflows. Over the previous six weeks, BTC▲$59,597.00 and ETH-based funds lost more than $6.5B.
Amid the drop, the Ethereum Foundation has faced internal changes–several departures and a 20% staff reduction–but this week saw the launch of a new non-profit organization, Ethlabs, backed by Bitmine and Sharplink.
Read more: Crypto Airdrops 2026 — How to Find and Claim Safely
Corporate Buying on the Dip: Sharplink and Bitmine Build Reserves
Some market participants saw the ETH drop as an entry opportunity. Sharplink made its first ether purchase in eight months–5,000 ETH for $7.85M. Bitmine also continues accumulating, adding 76,881 ETH over the past week.
ETH’s temporary displacement from the second-largest cryptocurrency spot highlights a shift in sentiment: investors are favoring stable assets with fixed value during uncertain times. But ETH’s recovery and corporate buying suggest long-term players see current levels as attractive.
Learn more: Not Just USDT and USDC — These Top 3 New Stablecoins Are Quietly Taking Over Crypto in 2026
