{"id":174182,"date":"2020-10-16T14:00:44","date_gmt":"2020-10-16T13:00:44","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=174182"},"modified":"2020-10-18T12:53:14","modified_gmt":"2020-10-18T11:53:14","slug":"heres-why-tether-usdt-could-overtake-ethereum-by-2021","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/heres-why-tether-usdt-could-overtake-ethereum-by-2021\/","title":{"rendered":"Here\u2019s why Tether (USDT) could overtake Ethereum by 2021"},"content":{"rendered":"

Tether (USDT<\/a>), the world\u2019s largest stablecoin by market cap, could reach a valuation higher than Ethereum in 2021, the latest issue of Bloomberg\u2019s Crypto Market Outlook suggested in a report<\/a> earlier this month.<\/span><\/p>\n

The trend is buoyed by the institutional shift towards and the demand for stablecoins in the cryptocurrency sector. In addition, governments around the world are similarly considering their own state-backed digital currencies, which can increase the demand for Tether, the report said.<\/span><\/p>\n

At press time, the USDT is valued at nearly $16 billion and accounts for over 4% of the total crypto market cap. Ethereum, in contrast, sits on a $43 billion market cap at press time.<\/span><\/p>\n

The rise of Tether<\/strong><\/h2>\n

Mike McGlone, a senior commodity strategist at Bloomberg and author of the report, noted that the importance of USDT is growing as the stablecoin performs an increasingly vital function within the digital asset ecosystem. <\/span><\/p>\n

He stated, \u201c[The] USDt plays a pivotal role in the trading of digital assets resulting in many digital asset spot exchanges now denominating trading pairs in Tether rather than Bitcoin.”<\/span><\/p>\n

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Bloomberg's #Crypto<\/a> Outlook, October 2020 — #Bitcoin<\/a> Trend, Adding Zeroshttps:\/\/t.co\/gZYF3AWMe2<\/a><\/p>\n

— Mike McGlone (@mikemcglone11) October 5, 2020<\/a><\/p><\/blockquote>\n