After Bitcoin price fell below $60,000, Ethereum followed suit, falling to $1,500 in the same candle. This decision triggered a development that had not happened in a long time, such as ETH lost its second place in the top 10 cryptocurrencies by market capitalization.
Tether’s USDT comes for Ethereum’s crown
For a very long time, Ethereum was able to maintain its place in second position on the list of largest cryptocurrencies by market capitalization, even during 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 the data, as Ethereum’s price plunged towards $1,500, its market cap fell behind that of Tether’s USDT. The stablecoin was able to briefly occupy second place as it remained above $186 billion, while ETH’s market cap fell below.
This did not last long, as the recovery allowed ETH to regain its position shortly after. However, the move showed the perilous position Ethereum finds itself in as its price has struggled in the market. Even today, USDT remains hot on the heels of Ethereum, with the difference between their market caps less than $15 billion. Additionally, companies like BNB and XRP have already been seen as potential future threats to the ETH crown.
Another loss for ETH against its rivals
Not only has Ethereum’s market cap fallen below that of Tether’s USDT, but there is also the fact that its trading volume is being surpassed by that of a rival. According to an article X shared by crypto analyst Diana, Bitcoin and Ethereum trading volumes have been surpassed by XRP on crypto exchange Upbeat.
The move suggests a move by investors toward other investments as market leaders continue to struggle. This is also happening at a time of massive sell-off, as liquidity continues to drain from the crypto market at staggering rates.
The price of Ethereum has since climbed back above $1,600 while Bitcoin has reclaimed $62,000. However, continued support remains fragile, especially as the market opens for another week of trading on Monday.
Featured image of Dall.E, chart by TradingView.com
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