- Tether’s total market cap could overtake Ethereum next year
- This could clear the way to mainstream adoption for stablecoins
- The growing popularity of stablecoins predicts a bullish outlook for Bitcoin
Ethereum News Today – according to a new report, Tether could surpass Etherem’s market cap by year-end. This could pave the way to the mainstream adoption of CBDCs (central bank digital currencies) and stablecoins. At least that’s what Bloomberg’s Crypto Outlook report for quarter four posits. According to Mike McGlone, the Senior Commodity Strategist at the platform, Tether is likely going to become the number two largest coin by market cap by 2021.
The report referenced ETH’s stagnant market cap (of $43.2 billion) that remained under $30 billion through 2019 and 2020. At least not until the DeFi wave gave it a boost in late July. The market cap of USDT, on the other hand, has steadily grown since 2017 apart from a significant drop in October 2018. The stablecoin started 2020 with a market cap of $4.1 billion. It has rapidly increased to $15.7 billion as of October 2020.
It Would Take A lot to Stall the Growth – McGlone
According to McGlone:
“It should take something huge to stall the growing adoption of Tether’s USDT. If the current trends and prediction prevail, the total market cap of Tether could surpass that of Ethereum by next year.”
Some crypto community members won’t appreciate this prediction. Adam Back, a crypto proponent, recently told his 211,500 followers on Twitter that Bitcoin is the only offering that matters. He believes that many investor portfolios show that BTC has denominated in the space. Back said:
“I use stablecoins. Although, I don’t hold them as much because that’s short BTC. Any strategy that does not involve holding BTC is at a high risk of losing out to Bitcoin.”
Tether’s Popularity Shows That the Arrival of CBDCs is Imminent
The report indicates that the high demand for Tether’s USDT is a signal for the arrival of CBDCs (central bank-backed digital currencies). It is simply a matter of time and this also predicts a bullish outlook for Bitcoin in the long-term. According to a report on the matter, BTC will keep on adding zeros through the above-mentioned period (as it continues to rise from its current price position of $11,448 to a whopping $100,000 by 2025). With a fixed digital currency supply of 21 million, the demand vs. supply metrics for the number one coin remains price-positive. The report adds:
“Bitcoin could keep doing what it has done for most of its existence. Which is appreciating at price due to its increasing adoption at a slower pace. Generally, the bulk of demand and adoption measures show that Bitcoin is likely to remain on its current upward path.”