Tether could overtake Ethereum by 2021 according to analysts and reports that we have in our crypto news today.
Tether which is the world’s biggest stablecoin by market cap could reach a valuation higher than Ethereum in 2021 according to the latest issue of Bloomberg’s crypto market outlook report that was released earlier this month. The trend was intercepted by the institutional shift towards and the demand for stable coins in the crypto sector and the governments across the world are considering their own-state-backed crypto assets which can increase the demand for USDT so Tether could overtake ETH by 2021.
— Mike McGlone (@mikemcglone11) October 5, 2020
At press time, the USDT coin is valued at about $16 billion and accounts for over 4% of the total crypto market cap. On the other hand, Ethereum is on the $43 billion market cap level. Mike McGlone who is a senior commodity strategist at Bloomberg noted that the importance of USDT is growing as the stablecoin performs well within the digital asset ecosystem. He stated:
“[The] USDt plays a pivotal role in the trading of digital assets resulting in many digital asset spot exchanges now denominating trading pairs in Tether rather than Bitcoin.”
The Bloomberg report contrasted USDT with the altcoin which fueled the speculative crypto bubble of 2017 and the report continued:
“Tether represents what many of the so-called cryptocurrencies aren’t: a stable form of payment.”
Paolo Ardoino, the CTO at Tether shared his sentiment:
“As the most stable, liquid, and trusted stablecoin, it is powering so much innovation in crypto at the moment. Tether is lubricating many of the powerful protocols that Ethereum has given birth to, such as those in DeFi. Of course, we don’t see ourselves as competing with Ethereum.”
Arduino added that the ETH market cap which stands at $40 billion will be a powerful statement. In the meantime, speaking on Tether’s position on the market near Bitcoin’s, Arduino said that the team sees the USDT as a complement to Bitcoin rather than a competitor. Tether works with different blockchains like Algorand and EOS, but also TRON, OMNI, and Solana. Tether is driven to support and empower the growing ventures and innovation within the blockchain space. In the meantime, McGlone predicted that the continuation of quantitative easing measures and rising debt-to-GDP levels will provide a strong hurdle for the ascent of BTC in the gold asset on course to reach 100,000 USD in 2025.
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