Following the Bitcoin price crash below $60,000, Ethereum followed suit, dropping toward $1,500 in the same candle. This move triggered a development that has not happened in a long time, as ETH lost its second-place position in the top 10 cryptocurrencies by market cap.
Tether’s USDT Coming For Ethereum’s Crown
For the longest time, Ethereum has been able to maintain its stronghold on the second position on the list of largest cryptocurrencies by market cap, even through brutal bear markets. But last week’s crash changed something as another cryptocurrency was able to take this position, even for a short time.
According to data, as the Ethereum price plunged toward $1,500, its market cap fell behind that of Tether’s USDT. The stablecoin was able to briefly hold second place as it remained above $186 billion, while ETH’s market cap dropped below.
This wasn’t for long as the recovery saw ETH reclaim its position shortly after. However, this move has shown the perilous position that Ethereum is in as its price has struggled in the market. Even now, USDT remains hot on Ethereum’s heels, with less than $15 billion being the difference between their market caps. Also, the likes of BNB and XRP have previously been said to be potential future threats to ETH’s crown.
Another Loss For ETH Toward Rivals
Not only did the Ethereum market cap fall below that of Tether’s USDT, but there is also the fact that its trading volume is being surpassed by a rival. According to an X post shared by crypto analyst Diana, the Bitcoin and Ethereum trading volumes were surpassed by XRP on the Upbeat crypto exchange.
This move suggests the movement of investors toward other investments as the market leaders continue to struggle. It is also happening during a time of large sell-offs, as liquidity continues to be drained from the crypto market at staggering rates.
The Ethereum price has since recovered above $1,600 as Bitcoin reclaimed $62,000. However, the hold on the support remains shaky, especially as the market opens up for another trading week on Monday.
Featured image from Dall.E, chart from TradingView.com
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