USDT overtakes Ethereum for the first time on a key valuation metric, with Tether’s stablecoin leading in fully diluted valuation. Per CoinGecko statistics, Tether’s USDT attained a fully diluted valuation of $191.521 billion, which is more than ETH’s $187.532 billion after ETH fell 5.5% in the last 24 hours.
Bitcoin is still the largest crypto asset by FDV. This sort of shake-up between a stablecoin issuance and volatile prices of assets can change rankings after market capitalization.
The Leak as per Data
With USDT overtakes ETH on FDV driven by rising USDT valuation, Tether has been gradually creating new tokens to fulfill dollar liquidity demand, pushing its FDV up, while ETH’s FDV went down due to price action.
USDT per the last CoinGecko report is now placed second by FDV, after BTC and before ETH. Market capitalization that uses circulating supply still has ETH above USDT, this means that the switch is only seen at the metric level and not structurally.
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Key Entities and Industry Impact
USDT overtakes Ethereum on FDV, reminding Ethereum developers, Layer-2 teams, and DeFi protocols of their reliance on stablecoin flows for activity and treasury management. Regulators are still keeping an eye on reserve attestations and issuance practices.
Ethereum developers, Layer-2 teams, and DeFi protocols are reminded of their reliance on stablecoin flows for activity and treasury management. Regulators are still keeping an eye on reserve attestations and issuance practices.
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Context and Outlook
The move follows USDT overtakes ETH on FDV and is part of the broader trend of institutional use of stablecoins, risk-off rotations during ETH price drops, and more sophisticated on-chain analytics from tools like Glassnode and DefiLlama.
In the future, FDV rankings might normalize with ETH price recovery, but USDT overtakes ETH is a milestone that highlights stablecoins’ increasing role in market structure.
Because of this, stakeholders should keep a close eye on issuance, reserve transparency, and Ethereum L2 growth as main indicators, especially now that USDT overtakes Ethereum on this valuation metric.
Also Read: Bitcoin Crashes to $58K As $1.26 Billion Liquidated in Market Bloodbath
