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A new report predicts that Tether could surpass Ether’s market cap by the end of next year, paving the way for mainstream adoption of stablecoins and central bank digital currencies (CBDCs).
According to Bloomberg’s Crypto Outlook report for Q4 2020 written by Senior Commodity Strategist Mike McGlone, Tether (USDT) is likely to take second place by market cap from Ether (ETH) in 2021. The report cites “stagnant market cap. “of ETH, which currently stands at $ 43.2 billion but remained below $ 30 billion for most of 2019 and 2020, before getting a boost from DeFi in late July.
The market cap of USDT, on the other hand, has seen steady growth since 2017, with only one significant decline in October 2018. The stablecoin started 2020 with a market cap of $ 4.1 billion, “in rapid rise “to $ 15.7 billion in October.
“It would take something significant to stop the growing adoption of Tether,” McGlone said. “If current trends prevail, Tether’s market cap could overtake Ethereum next year.”
Not everyone in the crypto community will appreciate the prediction. Cryptocurrency pioneer Adam Back said his 211,500 Twitter followers on Oct.11 that Bitcoin (BTC) is “the only benchmark that matters” as he believes most investor portfolios are denominated in the cryptocurrency.
#bitcoin the unit is already an account, for cryptocurrency traders. most wallets are denominated in bitcoin. it is the only benchmark that matters, you want to know if your long / short / option / yield / alt trading strategy performed better or worse, or you could have resisted. not joking is a risk.
– Adam Back (@ adam3us) 11 October 2020
“I use stablecoins, but I don’t care much because it’s Bitcoin short”, She said Back. “Any strategy that does not involve holding Bitcoin is at high risk of underperforming Bitcoin.”
Although the report suggests that Tether’s demand indicates that the arrival of central bank digital currencies (CBDCs) is simply “a matter of time,” it also predicts a bullish future for Bitcoin.
Bloomberg said BTC will “add zeros” as it rises from its current price of $ 11,448 to $ 100,000 by 2025. With a fixed supply of 21 million coins, “supply and demand metrics remain positive,” he said. said.
“Bitcoin may continue to do what it has for most of its nascent existence, appreciating the price in the wake of increased adoption, but at a slower pace,” the report said.
“Most of the demand and adoption measures indicate that Bitcoin is more likely to stay on its upward path.”
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