USDT has not been this close to ethereum before

[Oshosondy]

Ethereum marketcap as of now is $220.71 billion.
USDT marketcap as of now is $183.58 billion.

Is USDT not gradually getting close? USDT has not been this close to ethereum before.

What do you think about this?

I know ethereum will rise back and go above USDT if it happen but I think this may be indicating something as altcoins may disappoint people at anytime.

[FinneysTrueVision]

Regardless of how people may feel about stablecoins and USDT in particular, they have managed to find product-market fit. One of Ethereum’s primary utilities is being a blockchain for stablecoin transfers. The ETH currency, however, is only necessary for paying gas. I don’t see why anybody would want to use it as a store of value. Ethereum might be a great chain that many people are building on, but it has failed as a currency.

This may finally be the year when ‘the flippening’ comes to pass, it just won’t be in the way ETH maximalists thought it would happen.

[tokeweed]

^  The 'flippening'.  Lolol.  I used love throwing that term around in the speculation section when ETH starts trending up against BTC just to see how the maxis react.    But yeah in case you guys didn't know, Vitalik has been selling his personal stash of ETH and I'm feeling like he also has an unknown stash of BTC that he could also selling rn... 

Vitalik was into BTC before launching ETH and don't forget that he founded Bitcoin Magazine back in the day.    So wouldn't be surprised if he also has a large stack of BTC somewhere.

[JeromeTash]

It's happened before though not with USDT but XRP
To be honest, ETH did not perform so well in this recent bull market as it was expected. A lot of people thought it would blow past $5K towards maybe $10K, but it just stayed stagnant between $4K and $3.

I also think the likes of Solana and BNB took off most of the hype (and money inflow) that Ethereum had back in the day.

[shinratensei_]

USDT market cap growth rate is 36% in 2025 alone, it has been steadily growing despite being a stablecoin issued by some company. Those compounding growth will overtake some of the biggest altcoin including ETH if they keep failing in setting new ATH record.
ETH, Solana or any altcoins right now hardly broke their ATH and only going up a little bit higher, it's almost certain that USDT will catch up to their market cap. Imagine a stablecoin that have bigger market cap than the blockchain it deployed in.

[FinneysTrueVision]

It's happened before though not with USDT but XRP
To be honest, ETH did not perform so well in this recent bull market as it was expected. A lot of people thought it would blow past $5K towards maybe $10K, but it just stayed stagnant between $4K and $3.

I also think the likes of Solana and BNB took off most of the hype (and money inflow) that Ethereum had back in the day.

Bcash also flipped Ethereum before, but none of these has lasted for more than a few days or weeks. I think USDT has a chance to take the #2 place and stay there for a while. If Tether fails to overtake Ethereum, it might be due to there being so much fragmentation among stablecoins and not because ETH suddenly becomes more popular. USDT’s market share is being diluted by competition from USDC, USDe, USDS, and now USAT.

[asriloni]

Ethereum marketcap as of now is $220.71 billion.
USDT marketcap as of now is $183.58 billion.

Is USDT not gradually getting close? USDT has not been this close to ethereum before.

What do you think about this?

I know ethereum will rise back and go above USDT if it happen but I think this may be indicating something as altcoins may disappoint people at anytime.

It's normal since tether keeps printing more and more stable token. It's growing even faster compared to the ethereum's inflation. So you will be slowly, but surely USDT to pass ethereum someday when the big dump happen.

Beside that the take over of USDT means lack of demand to alts. If alts still get huge demand, ETH may not be dumping below USDT. So, it's the trend effect. We can expect this to last for some times, but once the bull will come back. ETH can surpass tether mcap again.

So i think it's all due to the volatility.

[Odusko]

You see that gap between Ethereum and USDT, you may think it little gap but that can take forever for USDT to cover, I am not surprised that USDT surged in the market cap, but that not withstanding is because of the demand for stable coin lately between their have their limitations which stop it growth in terms of long term, although Ethereum itself have not being doing well in the market also but not to the extent of being overtaken by stable coins.

[Akbarkoe]

A clear indication that a bear market is underway and people are more fearful of altcoins, leading more investors to store their money in stablecoins. The rise in stablecoins indicates a decline in confidence in the altcoin market. Emotionally, this is true, as I also have similar thoughts. During periods like this, it's better to hold USDT to avoid volatility, while exploring potential in other altcoins.
ETH has begun to lose its holders because they weren't particularly enthusiastic about the previous cycle, and this could also be a trigger.

[shinratensei_]

A clear indication that a bear market is underway and people are more fearful of altcoins, leading more investors to store their money in stablecoins. The rise in stablecoins indicates a decline in confidence in the altcoin market. Emotionally, this is true, as I also have similar thoughts. During periods like this, it's better to hold USDT to avoid volatility, while exploring potential in other altcoins.
ETH has begun to lose its holders because they weren't particularly enthusiastic about the previous cycle, and this could also be a trigger.

The market has lost its steam, nothing of significance is going on and to be blunt, altcoin market is running on hype.
It's no wonder that everybody is holding stablecoin instead. The first time altcoin lost its hype, people will convert it all to stablecoin due to lack of opportunity.

Maybe when altcoin become hype again that people will start coming back to altcoin.

[Akbarkoe]

A clear indication that a bear market is underway and people are more fearful of altcoins, leading more investors to store their money in stablecoins. The rise in stablecoins indicates a decline in confidence in the altcoin market. Emotionally, this is true, as I also have similar thoughts. During periods like this, it's better to hold USDT to avoid volatility, while exploring potential in other altcoins.
ETH has begun to lose its holders because they weren't particularly enthusiastic about the previous cycle, and this could also be a trigger.

The market has lost its steam, nothing of significance is going on and to be blunt, altcoin market is running on hype.
It's no wonder that everybody is holding stablecoin instead. The first time altcoin lost its hype, people will convert it all to stablecoin due to lack of opportunity.

Maybe when altcoin become hype again that people will start coming back to altcoin.

Basically it is like that every cycle too, people who judge to anticipate deeper losses when the market is in a bearish state, investors definitely choose to shift their investment to stable coins to keep their money.
A realistic view of not losing and taking profits is the best choice, being a maximalist on a coin I think is not right if the momentum is bad, forcing yourself to keep holding altcoins is stupid.

[Webetcoins]

The gap is 50 billion dollars, that is a big difference, we are talking about 28% larger in market cap, and that's not that small, we are talking about over quarter of a difference. I get that it has never been this close, and I guarantee you that one day it will even pass, but until that moment we are not really at a danger of a flip at the moment, ETH will keep its place for now.

We are going to go further in to the bear market so that may change soon enough, ETH May even become third, but with bull run it will go above again.

[dansus021]

Is USDT not gradually getting close? USDT has not been this close to ethereum before.

What do you think about this?

I know ethereum will rise back and go above USDT if it happen but I think this may be indicating something as altcoins may disappoint people at anytime.

You know why this happened, because United States now approved USD stablecoin, so USD now have, I would say a Strength. This is the first reason when the regulator says "OK" than the company now dont have a break to grow, especially USDT buy US bond like crazy so it drive the US economies too.

Second we didnt see altcoin season this year Ethereum didnt perform well so the marketcap is stuck at that level, and yes its concerning. ETH drop while USDT keep print their money

[Kavelj22]

What we are witnessing today as rapprochement between the two marketcap values is caused by the decline in Ethereum more than an absolute superiority of USDT. Ethereum is still the base of decentralized finance Defi with a share of about 57%. Ethereum is the infrastructure of complicated apps that are blockchain based Dapps, while USDT is just important as the primary currency that flows through these apps.

USDT reaching the level near to ethereum confirms the increasing importance of stablecoins as a fundamental base within the crypto ecosystem، especially during periods of market uncertainty and price's declines.

[bitgolden]

With gap now growing to sixty billion dollars, it shows that something as static as stablecoin USDT, which doesn't "go down" because there is no value and it's always 1 dollars, whereas ETH goes down because we are in the bear market and it's been lowest in a long long years, the gap is still wide.

We can safely assume that ETH will not drop to third place just yet. It may happen one day if usage of USDT grows a lot more, but until that moment, the gap is very clear and ETH will stay at second place.

[dwyane36]

With gap now growing to sixty billion dollars, it shows that something as static as stablecoin USDT, which doesn't "go down" because there is no value and it's always 1 dollars, whereas ETH goes down because we are in the bear market and it's been lowest in a long long years, the gap is still wide.

We can safely assume that ETH will not drop to third place just yet. It may happen one day if usage of USDT grows a lot more, but until that moment, the gap is very clear and ETH will stay at second place.

Given that in recent years, the total USDT supply has increased by an average of 30-40 billion tokens per year, then, at this rate, USDT could surpass Ethereum in market cap within the next 2-5 years. This could happen if Ethereum continues to trade in the $2-3k range in the coming years, as it's doing now.

[Jostern]

The difference is USDT is more of a stable coins while Etherum is more of a decentralized coin which is volatile in nature, so I believe there is every tendency that you will have a situation where you have a similarity when you have to understand that the fact that USDT is a stable coin means that it would definitely catch up with Etherum and it been rising drastically on a regular basis and you will have to understand that there is so many differences between both coins, so I’m really not surprised if in the next years to come that USDT will have to surpass the Etherum price range.

[TastyChillySauce00]

The difference is USDT is more of a stable coins while Etherum is more of a decentralized coin which is volatile in nature, so I believe there is every tendency that you will have a situation where you have a similarity when you have to understand that the fact that USDT is a stable coin means that it would definitely catch up with Etherum and it been rising drastically on a regular basis and you will have to understand that there is so many differences between both coins, so I’m really not surprised if in the next years to come that USDT will have to surpass the Etherum price range.

Isn't that concerning when the native coin in a Proof of stake blockchain that is supposedly being used to secure the network through validator staking have less total value compared to stablecoin living inside the smart contract.
Just imagine if the trend keeps up and total value of Ethereum is only fraction of the stablecoin in the blockchain, 51% attack on the blockchain will become profitable.