On June 26, USDT (Tether) overtook Ethereum by market capitalization. ETH dropped 5.2% in 24 hours to $1,510, pushing the coin's market cap below $185 billion. With $186 billion in total supply, Tether moved into second place among all crypto assets worldwide.
What Happened to Ethereum on June 26?
ETH had been declining for weeks, but selling pressure accelerated on June 26. The coin touched $1,510 on Coinbase, landing back at long-term support levels last tested in October 2023 and April 2025. Both times the market recovered from those levels. A third recovery is not guaranteed.
USDC (Circle) also overtook XRP by market cap in the same session ($73.6B versus $64B), as XRP fell toward $1, its lowest since November 2024. Ethereum is down more than 20% for June, and stablecoins now occupy a record share of the overall crypto market.
How Did USDT Overtake Ethereum?
To understand how this happened, it helps to look at what market cap actually measures. It equals the current price multiplied by the number of coins in circulation. For Ethereum at $1,510 with roughly 120 million coins, that comes to about $185 billion. For USDT the math is simpler: the stablecoin trades at $1, so its market cap equals its total issuance. Right now that is $186 billion.
Why does USDT keep growing while the market falls? Analysts at 21Shares pointed out that in the previous bear market, stablecoin supply contracted more than 30%. This time it is hitting record highs. They described this as the strongest evidence yet that stablecoins have become a defining use case in crypto, with demand that no longer depends on the market cycle.
Here is why stablecoins grow during corrections:
- Safe-haven parking. Investors move into USDT instead of exiting to fiat, staying inside the crypto market while avoiding volatility.
- Trading and DeFi settlements require USDT regardless of market direction.
- International payments and remittances provide a steady demand channel not tied to ETH or BTC prices.
- USDT issuance grew to $186 billion even as the market sold off. Two opposite trends in the same space.
Alvin Kan, chief operating officer of Bitget Wallet, called the flip a notable milestone showing the explosive growth of stablecoins. He added that it reminds the market that ETH must continue delivering utility and narrative momentum to hold its position.
Why Is ETH Under This Much Pressure?
Ethereum in 2026 is competing against several strong pulls at once. Institutional capital is flowing into Bitcoin ETFs, stablecoins, and AI-related equities rather than altcoins. The Ethereum Foundation cut 20% of its workforce and is reviewing its strategic direction. Several key developers left the organization.
There is a counterpoint. This week, former EF members launched Ethlabs, an independent nonprofit backed by Ether treasury companies Bitmine and Sharplink. Part of the ecosystem is betting that Ethereum will work through this period and develop outside the Foundation structure.
Who Is Buying ETH at These Levels?
Not everyone is selling. Sharplink purchased 5,000 ETH this week. Its first buy in eight months. CEO Joseph Chalom named three catalysts in May that could push ETH higher, and some of them are starting to take shape.
Bitmine, chaired by investor Tom Lee, added 76,881 ETH to its balance sheet last week. Both companies are building an ETH treasury publicly and see current levels as an accumulation zone. For them, $1,510 is not a floor. It is a discount.
What to Watch for ETH Next?
CoinTelegraph reports that $170 million in ETH long positions were liquidated over the past week. The market has partially cleared excess leverage, lowering the risk of another sharp cascade of forced selling. Technical support around $1,500 has held twice before.
Two key signals for the coming weeks: Fed rate decisions and Bitcoin's overall direction. If BTC stabilizes above $60,000, pressure on altcoins should ease. If outflows continue, analysts point to $1,300 as the next key zone.
If you are looking to sell ETH for Ukrainian hryvnia or buy at the current dip, Kurslog compares live rates across dozens of exchange offices in real time.
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