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British Virgin Islands, October 14, 2020 – Tether.to, the blockchain-enabled platform that powers the largest stablecoin by market capitalization, may exceed the market capitalization of Ethereum in 2021 forming part of an inexorable trend towards mainstream adoption of stablecoins and central bank digital currencies (CBDCs).
Bloomberg’s Crypto Outlook Report, Bitcoin Trend, Adding Zeros, highlights current market trends that are propelling forward the growth of Tether (USDt), the “top stablecoin”. While the market capitalization of Ethereum has remained relatively stagnant USDt jumped to an all-time high of almost US$16 billion at the start of October.
USDt is on pace to match the market capitalization of Ethereum in a bit less than a year, according to the Bloomberg report, authored by Mike McGlone, a Senior Commodity Strategist. Ethereum has a market capitalization of about US$43 billion, according to CoinMarketCap.
The importance of USDt is growing as the stablecoin performs an increasingly vital function within the digital asset ecosystem. 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. Furthermore, crypto’s reserve currency is also being increasingly used in remittances and innovative projects in the digital asset space, including decentralised finance (DeFi).
“Aside from Bitcoin of course, which is the king of all cryptocurrencies, tether is in some respects the digital asset of our times,” said Paolo Ardoino, CTO at Tether. “As the most stable, liquid and trusted stablecoin, it is powering so much innovation in crypto at the moment. Tether is lubricating many of the powerful protocols that Ethereum has given birth to, such as those in DeFi. Of course, we don’t see ourselves as competing with Ethereum. Nevertheless, eclipsing Ethereum’s market capitalization, which currently stands above US$40 billion, will be a powerful statement.”
The Bloomberg report contrasts USDt with speculative so-called altcoin digital assets that fuelled the speculative crypto bubble of 2017. “Tether represents what many of the so-called
cryptocurrencies aren’t: a stable form of payment,” the report stated. “The still deflating broad crypto-asset bubble from 2017 is migrating assets toward Tether.”
Meanwhile, Bloomberg forecasts that the continuation of quantitative easing measures and rising debt-to-GDP levels will provide a strong tailwind for the ascent of Bitcoin, with the digital gold asset on course to reach US$100,000 in 2025.
“We definitely see Tether as a complement to Bitcoin rather than a competitor,” said Ardoino. “Tether once again proves itself to be one of the most trusted assets in the crypto space. Our team is also working to further growth into online commerce and traditional finance.”
USDt’s total market capitalization has mushroomed from about US$2 billion in February 2019 to reach about US$16 billion. Tether works across a diversity of different blockchains, including Algorand, Bitcoin Cash’s Simple Ledger Protocol (SLP), Ethereum, EOS, Liquid Network, Omni, Tron and Solana. Tether is driven to support and empower growing ventures and innovation in the blockchain space.
ABOUT TETHER
Tether is the preeminent stablecoin with the biggest market capitalization, surpassing that of all rival offerings combined. Created in October 2014, Tether has grown to become the most traded cryptocurrency. Tether is disrupting the legacy financial system by offering a more modern approach to money. By introducing fiat currency-digital cash to the bitcoin, Ethereum, EOS, Liquid Network, Omni, Tron and Algorand blockchains, Tether makes a significant contribution to a more connected ecosystem. Tether combines digital currency benefits, such as instant global transactions, with traditional currency benefits, such as price stability. With a commitment to transparency and compliance, Tether is a fast and low-cost way to transact with money.
Media Contact for Tether:
Joe Morgan
Senior Public Relations Manager
joe.morgan@tether.to
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