Ethereum whales exit positions as the asset drops below $USDT in Marketcap

Four long-dormant Ethereum wallets have liquidated a combined 37,602 $ETH at an average price of $1,560, closing out positions they had held for eight years. The timing was pointed: the sell-off landed on the same day that Tether's $USDT briefly overtook $ETH in market capitalisation for the first time.

OG Wallets Walk Away With a Fraction of Peak Value

According to on-chain analytics platform Lookonchain, the four wallets originally received 37,602 $ETH eight years ago when the asset was trading at roughly $830. Despite sitting on unrealised profits that exceeded $150M during both the 2021 and 2025 cycle peaks, the addresses remained completely inactive throughout both bull runs. When the wallets finally moved, they transferred assets directly to exchanges at current market prices, realising just $27.4M in total proceeds. That figure represents a fraction of what the positions were worth at their multi-cycle highs.

The decision to sell now, deep into a prolonged drawdown, is a stark illustration of how long-term holders can see paper fortunes erode without ever acting. Ethereum's price has tumbled roughly 70% from its 2025 all-time high, pressing the asset into the $1,500 to $1,600 range where it traded on Thursday.

USDT Briefly Flips ETH in a Historic Market Cap Moment

The whale exits arrived against a notable macro backdrop for Ethereum. $ETH dropped 5.2% in 24 hours, falling to $1,510 and pushing its market cap below $185 billion. That was enough for Tether's $USDT to briefly surpass $ETH to become the second-largest crypto asset by market cap. USDT's market cap climbed to approximately $186.06 billion versus Ethereum's $185.66 billion at the peak of the crossover. Ethereum later recovered and reclaimed the second spot, but the episode underlines how fragile sentiment around the asset has become.

The crossover is partly a function of two diverging forces. While Ethereum continues to lead in decentralised finance, smart contracts, and developer activity, investors appear to be prioritising liquidity and stability during the current downturn. Tether, meanwhile, has continued to expand its supply. USDT's market cap grew from $144.2 billion to around $184 billion in the twelve months leading into the crossover, a gain of roughly 28%, while ETH's dollar valuation moved in the opposite direction.

For now, the exit of eight-year Ethereum veterans at distressed prices adds to a broader picture of weakening conviction among some of the network's earliest participants, even as other large buyers continue to accumulate at current levels.

Sources:
CryptoPotato: SharpLink Resumes ETH Buying but OG Whales Capitulate
Crypto Briefing: Tether Surpasses Ethereum in Market Cap
FX Leaders: USDT Flips Ethereum Briefly as ETH Crashes to Year Lows