Bitcoin

According to a Bloomberg report, Tether’s market cap could surpass Ethereum’s in 2021

A new report predicts that Tether could outperform Ether’s market cap by the end of next year, paving the way for mass adoption of central bank digital currencies (CBDCs).

According to Bloomberg’s “Crypto Outlook” report for the fourth quarter of 2020 by senior commodity strategist Mike McGlone, it is possible that Tether (USDT) will hijack Ether (ETH) from second place in 2021 by market capitalization. The report quoted the “Stagnating market capitalization” at ETH, That’s $ 43.2 billion currently, but stayed below $ 30 billion for most of 2019 and 2020 before the DeFi ecosystem received a boost in late July.

On the flip side, USDT market capitalization has grown steadily since 2017, with only one significant drop in October 2018. The stablecoin started 2020 with a market cap of $ 4.1 billion and rose rapidly to $ 15.7 billion in October.

Market capitalization of Tether vs Ethereum. Source: Bloomberg
According to a Bloomberg report, Tether’s market cap could surpass Ethereum’s in 2021
According to a Bloomberg report, Tether’s market cap could surpass Ethereum’s in 2021

“Something significant should happen to stop the increasing adoption of Tether,” McGlone explained. “If current trends prevail, Tether’s market capitalization could outperform Ethereum in the next year.”

Not everyone in the crypto community welcomes this prediction. The pioneer of cryptocurrencies, Adam Back, Told him to his 211,500 Twitter followers on October 11th that Bitcoin (BTC) is “the only benchmark that matters” He believes that the majority of investor portfolios are in the market-leading cryptocurrency.

“I use stablecoins, but I don’t keep them very often because they are small bitcoins,” He said Back. “Any strategy where Bitcoin is not held carries a high risk of Bitcoin underperforming.”

Although the report suggests that Tether’s lawsuit shows this The advent of Central Bank Digital Currencies (CBDCs) is simply “a matter of time” and also heralds a bullish future for Bitcoin.

Bloomberg said thatBTC will “add zeros” as it increases from its current price of $ 11,448 to $ 100,000 by 2025. With a fixed supply of 21 million coins “Demand metrics vs. Offers are still positive for the price “, He said.

“Bitcoin could continue to do what it has been doing for most of its existence, increasing its price, but more slowly, due to increased adoption.” it is stated in the report.

“Most demand and acceptance metrics suggest that Bitcoin is more likely to stay on its uptrend.”

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