A new report predicts that Tether could outperform Ether’s market capitalization by the end of next year, clearing the way for the mass adoption of central bank digital currencies (CBDCs).
According to Bloomberg’s “Crypto Outlook” report for the fourth quarter of 2020, written by Senior Commodity Strategist Mike McGlone, it is possible that Tether (USDT) the snatch second place by market capitalization to Ether (ETH) in 2021. The report cited the ETH’s “stagnant market capitalization”, which is currently $ 43.2 billion but stayed below $ 30 billion for most of 2019 and 2020, before receiving a push from the DeFi ecosystem in late July.
On the other hand, the USDT market capitalization has seen steady growth since 2017, with only a significant drop in October 2018. The stablecoin started on 2020 with a market capitalization from USD 4.1 billion, “rising rapidly” to USD 15.7 billion in October.
“Something significant should happen to stop the growing adoption of Tether”, McGlone stated. “If current trends prevail, Tether’s market capitalization could surpass Ethereum’s 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 11 que Bitcoin (BTC) is “the only reference point that matters” as he believes that the majority of investors’ portfolios are denominated in the market leading cryptocurrency.
#bitcoin is the unit a account already, for crypto traders. most portfolios are bitcoin denominated. it’s the only benchmark that matters, you want to know if your long/short/option/yield/alt trading strategy did better or worse, or you could have just held. not hodling is risk.
— Adam Back (@adam3us) October 11, 2020
“I use stablecoins, but I don’t keep them very much as they are a small Bitcoin”, He said Back. “Any strategy that does not involve holding Bitcoin has a high risk of underperforming Bitcoin.”
Although the report suggests that Tether’s lawsuit shows that the arrival of central bank digital currencies (CBDC) is simply “a matter of time”, it also heralds a bullish future for Bitcoin.
Bloomberg said thate BTC will be “adding zeros” as it rises from its current price of $ 11,448 to $ 100,000 by 2025. With a fixed supply of 21 million coins, “Demand metrics vs. offer are still positive for the price ”, He said.
“Bitcoin could continue to do what it has done for most of its nascent existence, appreciating in price due to increased adoption, but at a slower pace.” is stated in the report.
“Most of the demand and adoption metrics indicate that Bitcoin is more likely to stay on its upward path.”