After Bitcoin price crashed below $60,000, Ethereum followed suit, dropping towards $1,500 on the same candlestick. This move sparked a development that hasn’t happened in a long time as ETH. It lost its second place among the top 10 cryptocurrencies by market capitalization.
Tether’s USDT aims to take Ethereum’s crown
For a long time, Ethereum was able to maintain its second place in the list of largest cryptocurrencies by market capitalization, despite a brutal bear market. However, something changed with last week’s crash, as another cryptocurrency was able to capture this position, even if only for a short period of time.
According to the data, as Ethereum’s price plummeted towards $1,500, its market capitalization fell below that of Tether’s USDT. While ETH’s market capitalization fell below $186 billion, the stablecoin was able to temporarily maintain second place by surpassing $186 billion.
This did not last long as this recovery quickly saw ETH regain its position. However, this move illustrates the dangerous position that Ethereum is in, with its price stagnant in the market. Currently, USDT continues to closely follow Ethereum, with the difference in market capitalization between the two being less than $15 billion. Also, the likes of BNB and XRP have been said to be potential future threats to ETH’s crown.
New losses of ETH against rivals
Not only has Ethereum’s market capitalization fallen below Tether’s USDT, but there is also the fact that its trading volume has been overtaken by its rival. According to an X post shared by cryptocurrency analyst Diana, the trading volume of Bitcoin and Ethereum exceeded that of XRP on the Upbeat cryptocurrency exchange.
The move suggests investors are moving elsewhere as the market leader continues to struggle. This is also happening during a period of massive declines, as liquidity continues to drain from the crypto market at an alarming rate.
Ethereum price then recovered above $1,600 as Bitcoin regained $62,000. However, support remains fragile, especially as a new trading week begins on Monday.
Featured image from Dall.E, chart from TradingView.com
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