Bloomberg Intelligence commodity strategist Mike McGlone says that a cryptocurrency could surpass Ethereum, the second largest cryptocurrency by market capitalization, in 2021.
Tether (USDT) has become the third largest crypto in terms of market cap, after Bitcoin and ETH, and surpassed XRP in 2020. Although the dominant stablecoin has seen mass fluctuations since the massive market crash caused by the coronavirus in March, it is currently progressing quite ambitiously on CoinMarketCap with a market value of about $ 15.7 billion.
In a new report by Bloomberg on cryptocurrencies, McGlone adds that he thinks this market cap, which he calls the bubble, will continue to increase.
“The rapid increase in the market value of stablecoins means that, in our opinion, minting central bank digital currencies (CBDCs) is just a matter of time. Based on the downward trend seen since the beginning of 2019, stopping the increased adoption of Tether, the best stablecoin to surpass Ethereum’s capitalization in less than a year, seems difficult at this stage. ”
Ambitious Tether Prediction!
This is an ambitious estimate. Ethereum’s market cap is currently nearly three times the size of Tether and hovers around $ 44 billion.
McGlone notes that USDT is “a stable form of payment as opposed to so-called cryptocurrencies.” He also adds that Tether stood out after the crypto money bubble in 2017.
In addition, the commodity strategist stated that Bitcoin is on its way to overcoming the $ 14,000 core resistance; He says some measurements also show that BTC could reach $ 100,000 by 2025.
Other analysts also point to a link between Tether’s growing market cap and BTC price increases.