While the European Central Bank wants the term “stablecoin” to be reviewed because it considers it too ambiguous, its future digital Euro will have to, like it or not, coexist with major stablecoins such as Tether (USDT). The latter is gaining in strength and could even become the challenger of Bitcoin (BTC) by dethroning Ethereum (ETH).
2nd place: the course is set for Tether
In the Crypto Outlook for the month of October 2020, Bloomberg indicates that it is quite possible that the Tether take the place ofEthereum in terms of market capitalization, by 2021. TheUSDT is currently the 3rd largest cryptocurrency on the market.
The analyst Mike McGlone argues that one of the main indicators validating this hypothesis is the stagnation of the market capitalization ofEthereum, while that of the USDT is steadily rising.
Ethereum’s market capitalization is estimated at $ 43.2 trillion but, it remained below $ 30 trillion for most of 2019 and 2020. The observed rise is mainly related to the boom in the industry. Challenge.
TheUSDT On the other hand, it is showing a continuous increase: the market capitalization of stablecoin started this year at $ 4.1 trillion and stands as of October 2020 at $ 15.7 trillion.
McGlone indicates that it would take an exceptional incident to stop the ascent of theUSDT.
Miss you Joe: finally the real BTC bull run on the horizon?
The analysis of McGlone however, is not unanimous: Adam back swear by Bitcoin which according to him is the only benchmark crypto on the market – Adam back is a maximalist BTC, so we should not be surprised by the speech of the gentleman who treated all the altcoins as scam.
Back indicates that he uses stablecoins but, he emphasizes that these are only a short-term investment or ” Bitcoins short position ”.
Source : Image via Twitter
McGlone suggests that interest in stablecoins is a potential indicator of the future launch of central bank cryptocurrencies (CDBC) but, it also signals a bullish trend for Bitcoin – Joe the Whale had the same speech.
For Bloomberg, the price of the cryptocurrency is expected to reach 100,000 USD before 2025.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Tether one day beating Bitcoin: in terms of price it is almost impossible, in terms of market cap, it remains playable. The game of stablecoins will not actually begin until the release of major CDBCs: will cryptophiles prefer these Trojans to well-established stablecoins like USDT?
Litecoin, welcome in the Silver Age