- Bloomberg report says stablecoins, especially Tether (USDT), will get more popular over time
- USDT may rise to #2 on crypto charts in the near future
A new report from big media corporation Bloomberg is of the opinion that stablecoins, especially the one with the most market capitalization Tether (USDT), is likely to continue posting impressive growth and may soon dislodge Ethereum’s ETH to become #2 in the cryptocurrency charts.
Tether remains one of the oldest dollar-pegged stablecoins in the market right now and is currently #3 on the list with a market capitalization of around USD 9 billion. Ethereum’s market capitalization, on the other hand, is around USD 27 billion and rising so it will be a challenge for the stablecoins to gain this much in the near future, however, with the increased demand from users to transact with no intermediary, Tether’s market capitalization could easily improve substantially.
USDT is not bound by any hard caps and its sole circulation depends on the number of tokens being minted or liquidated in the Tether treasury. Therefore, a considerable fluctuation in its market capitalization is witnessed even if there is not much fluctuation within the price itself.
However, the same Bloomberg report says that Ethereum lives within Bitcoin’s shadow and therefore has no buoyancy of its own. Bloomberg is known for its centrist viewpoints and has ridiculed cryptocurrencies in the past.
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