--- title: "How USDT’s $185B growth could challenge Ethereum’s position" type: "News" locale: "en" url: "https://longbridge.com/en/news/275027677.md" description: "Tether's USDT is rapidly closing the gap with Ethereum (ETH) in market capitalization, currently at $185 billion compared to Ethereum's $272 billion. As demand for dollar-pegged liquidity rises, Tether's monthly active on-chain users reached a new high of 24.8 million, representing 68.4% of all stablecoin users. This growth suggests that Tether could potentially surpass Ethereum for the #2 market position, especially as Ethereum faces supply pressure and bearish market conditions." datetime: "2026-02-05T21:00:36.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/275027677.md) - [en](https://longbridge.com/en/news/275027677.md) - [zh-HK](https://longbridge.com/zh-HK/news/275027677.md) --- # How USDT’s $185B growth could challenge Ethereum’s position As demand for dollar-pegged liquidity continues to rise, Tether’s \[USDT\] footprint is beginning to compete with Ethereum \[ETH\] for the market’s #2 spot. Things are heating up! ## **Tether closes in on Ethereum** USDT’s market cap has continued to climb alongside stablecoins’ foothold in the space. This comes amid Ethereum’s (and much of the greater market’s) struggles under bearish conditions. That contrast is critical. Source: X Data per Cryptorank showed that the gap between Ethereum and Tether’s market cap is narrowing at a steady pace. Tether was at $185 billion while Ethereum sat at $272 billion at the time of writing. With stablecoins gaining ground year after year, the idea of Tether flipping Ethereum for the #2 spot no longer feels far-fetched. ## **Supported by real usage** According to their recently released quarterly report, Tether’s monthly active on-chain users hit a new ATH in Q4 2025. The number is roughly 24.8 million. Source: Tether More importantly, USDT made up 68.4% of all stablecoin monthly active users during the quarter. Demand has remained consistently strong through 2024 and 2025. Despite the arrival of newer competitors, most real activity continues to flow through Tether, an advantage that has proven difficult to dislodge. ## **Ethereum’s supply pressure isn’t helping** Source: Alphractal ### Related Stocks - [GLXY.US](https://longbridge.com/en/quote/GLXY.US.md) - [COIN.US](https://longbridge.com/en/quote/COIN.US.md) - [HUT.US](https://longbridge.com/en/quote/HUT.US.md) - [ABTC.US](https://longbridge.com/en/quote/ABTC.US.md) - [MARA.US](https://longbridge.com/en/quote/MARA.US.md) - [RIOT.US](https://longbridge.com/en/quote/RIOT.US.md) - [ETHE.US](https://longbridge.com/en/quote/ETHE.US.md) - [ETHW.US](https://longbridge.com/en/quote/ETHW.US.md) - [BTF.US](https://longbridge.com/en/quote/BTF.US.md) - [CETH.US](https://longbridge.com/en/quote/CETH.US.md) - [FETH.US](https://longbridge.com/en/quote/FETH.US.md) - [BLCN.US](https://longbridge.com/en/quote/BLCN.US.md) - [BTCO.US](https://longbridge.com/en/quote/BTCO.US.md) - [EZBC.US](https://longbridge.com/en/quote/EZBC.US.md) - [ARKB.US](https://longbridge.com/en/quote/ARKB.US.md) - [BITO.US](https://longbridge.com/en/quote/BITO.US.md) - [CONL.US](https://longbridge.com/en/quote/CONL.US.md) - [BLOK.US](https://longbridge.com/en/quote/BLOK.US.md) - [EETH.US](https://longbridge.com/en/quote/EETH.US.md) - [ETH.US](https://longbridge.com/en/quote/ETH.US.md) - [BITB.US](https://longbridge.com/en/quote/BITB.US.md) - [LMBO.US](https://longbridge.com/en/quote/LMBO.US.md) - [BRRR.US](https://longbridge.com/en/quote/BRRR.US.md) - [COIG.US](https://longbridge.com/en/quote/COIG.US.md) - [ETCO.US](https://longbridge.com/en/quote/ETCO.US.md) - [ETHV.US](https://longbridge.com/en/quote/ETHV.US.md) - [FBTC.US](https://longbridge.com/en/quote/FBTC.US.md) - [EZET.US](https://longbridge.com/en/quote/EZET.US.md) - [MRAL.US](https://longbridge.com/en/quote/MRAL.US.md) - [BTCW.US](https://longbridge.com/en/quote/BTCW.US.md) - [USDTHKD.VAHK](https://longbridge.com/en/quote/USDTHKD.VAHK.md) - [USDTUSD.VAHK](https://longbridge.com/en/quote/USDTUSD.VAHK.md) - [ETHHKD.VAHK](https://longbridge.com/en/quote/ETHHKD.VAHK.md) - [ETHUSD.VAHK](https://longbridge.com/en/quote/ETHUSD.VAHK.md) ## Related News & Research - [Tom Lee’s Bitmine buys $41 million worth of ETH, continuing aggressive treasury expansion: onchain data](https://longbridge.com/en/news/289405804.md) - [Key facts: ETH OI ~3.7M; Binance 44%+; perps lead; balances near lows](https://longbridge.com/en/news/289596374.md) - [Ethereum hovers near $1,700 as Bankless co-founder sells](https://longbridge.com/en/news/288865701.md) - [Hut 8 (HUT) Receives a Buy from Rosenblatt Securities](https://longbridge.com/en/news/289477810.md) - [Hut 8 shareholders approve KPMG as independent auditor](https://longbridge.com/en/news/289638336.md)