A stablecoin just passed Ethereum in market cap. Read that sentence again, because it would have sounded absolutely unhinged three years ago.
Tether’s USDT reached approximately $186 billion in circulating supply, edging past Ethereum’s market capitalization of roughly $186.263 billion during a broader market downturn. ETH was trading in the $1,500 to $1,600 range at the time of the crossover.
How a dollar-pegged token outgrew Ethereum
Ethereum’s market cap rises and falls with speculative demand. Tether’s market cap grows when new tokens are minted, which happens when there’s demand for dollar-denominated liquidity in the crypto ecosystem.
By mid-2026, Tether reported over $193 billion in total reserves backing its USDT in circulation. Tether’s profits exceeded $10 billion in 2025, making it one of the most profitable entities in the entire financial sector. USDT now commands an estimated 70% of the entire stablecoin market.
