A new report claims that Tether’s market capitalization could surpass ethereum by the end of the next year, leading to greater adoption for stablecoins and central bank-backed digital currencies (CBDCs).
According to Bloomberg’s Crypto Outlook report for Q4 2020, Tether will most likely displace ethereum for the second largest market capitalization in 2021.
Senior Commodity strategist and author of the report Mike McGlone cites a “stagnant market cap” ahead for ethereum, despite currently being valued at more than $43 billion.
The report notes that ether remained under $30 billion for most of 2019 and 2020 before undergoing an explosion over the summer driven by investor interest in decentralized finance products.
Compared to ethereum, McGlone predicts USDT will continue its steady growth pattern that began in 2017. The stablecoin has already increased by more than 280 percent in 2020, rising from $4.1 billion at the beginning of the year to $15.7 billion as of October.
The report reads,
It should take something significant to stall the increasing adoption of Tether. If current trends prevail, the market cap of Tether may surpass Ethereum next year.
In addition to predicting growth for Tether, Bloomberg anticipates a bullish future for bitcoin. McGlone predicted the price of bitcoin would rise to $100,000 by 2025, citing the limited 21 million coin supply as being a major catalyst for price growth.
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