{"id":88613,"date":"2020-10-14T02:45:16","date_gmt":"2020-10-13T23:45:16","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/tethers-market-cap-could-overtake-ethereums-next-year-bloomberg-report\/"},"modified":"2020-10-14T02:45:16","modified_gmt":"2020-10-13T23:45:16","slug":"tethers-market-cap-could-overtake-ethereums-next-year-bloomberg-report","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/tethers-market-cap-could-overtake-ethereums-next-year-bloomberg-report\/","title":{"rendered":"# Tether’s market cap could overtake Ethereum\u2019s next year \u2014 Bloomberg report"},"content":{"rendered":"

“# Tether’s market cap could overtake Ethereum\u2019s next year \u2014 Bloomberg report <\/strong>”<\/p>\n

A new report predicts Tether could surpass Ether\u2019s market cap by the end of next year, paving the way to mainstream adoption of stablecoins and central bank digital currencies (CBDCs). <\/p>\n

According to Bloomberg\u2019s Crypto Outlook report for Q4 2020 written by Senior Commodity Strategist Mike McGlone, Tether (USDT<\/a>) is likely to take<\/a> the number two position by market capitalization from Ether (ETH) in 2021. The report cited the \u201cstagnant market cap\u201d of ETH, which currently stands at $43.2 billion but remained under $30 billion for most of 2019 and 2020, before getting a boost from DeFi in late July. <\/p>\n

USDT\u2019s market cap, on the other hand, has seen steady growth since 2017, with just one significant dip in October 2018. The stablecoin began 2020 with a market capitalization of $4.1 billion, \u201crapidly rising\u201d to $15.7 billion in October.<\/p>\n

Market capitalization of Tether v. Ethereum. Source: Bloomberg<\/em><\/figcaption><\/figure>\n

\u201cIt should take something significant to stall the increasing adoption of Tether,\u201d McGlone stated. \u201cIf current trends prevail, the market cap of Tether may surpass Ethereum next year.\u201d<\/p>\n

Not everyone in the crypto community will app<\/a>reciate the prediction. Crypto pioneer Adam Back told<\/a> his 211,500 Twitter<\/a> followers on Oct. 11 that Bitcoin (BTC) is \u201cthe only benchmark that matters\u201d as he believes the majority of investor portfolios are denominated in the cryptocurrency. <\/p>\n

\n

#bitcoin<\/a> 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.<\/p>\n

\u2014 Adam Back (@adam3us) October 11, 2020<\/a><\/p><\/blockquote>\n

\u201cI use stablecoins, but I don’t hold them much as that’s short Bitcoin,\u201d said<\/a> Back. \u201cAny strategy that doesn’t involve holding Bitcoin is at high risk of underperforming Bitcoin.\u201d<\/p>\n

Though the report suggests the demand for Tether indicates that the arrival of central bank digital currencies (CBDCs) is simply \u201ca matter of time,\u201d it also predicts a bullish future for Bitcoin. <\/p>\n

Bloomberg stated BTC will be \u201cadding zeros\u201d as it rises from its current price of $11,448 to $100,000 by 2025. With a fixed coin supply of 21 million, \u201cdemand vs. supply metrics remain price-positive,\u201d it said. <\/p>\n

\u201cBitcoin could continue doing what it has for most of its nascent existence, appreciating in price on the back of increasing adoption, but at a slower pace,\u201d the report stated.<\/p>\n

\u201cMost demand and adoption measures indicate Bitcoin is more likely to stay on its upward path.\u201d<\/p><\/blockquote>\n<\/div>\n