The report explains that there is a growing demand for both Bitcoin and crypto-assets that resemble the dollar. If this trend prevails, USDT will definitely continue to grow. Additionally, the increased adoption of stable coins is also a strong signal that Central Bank Digital Currencies will be launched in the near future.
Expect Bitcoin #1, Tether #2 in 2021 If Trends Remain the Same.
Indicating demand for a digital version of gold (Bitcoin) and a crypto-asset like the dollar, if current trends prevail, the market cap of Tether may surpass Ethereum next year.
Increasing adoption of stable coins is likely a precursor for central bank digital currencies and promises to be more enduring than alt-coin speculative excesses. The rapid rise in the market cap of stable coins indicates that central bank digital currencies (CBDCs) are a matter of time, in our view.
Ethereum’s Market Cap has Stagnated Since 2017
With respect to the popularity of the stablecoin of Tether (USDT), the report went on to explain that it would take a mega event to halt the increasing adoption of Tether which is on a path to edge out Ethereum in terms of market cap.
It should take something significant to stall the increasing adoption of Tether, the top stable coin, which ison pace to match the capitalization of Ethereum in a bit less than a year, based on the regression trend since the start of 2019.
Our chart depicts the stagnant market cap of Ethereum since 2017 vs. rapidly rising Tether, which jumped to a new high of almost $16 billion at the start of October.