There’s a digital asset that’s seen as having enormous potential.
Bloomberg Intelligence commodity strategist Mike McGlone said recently that a relative crypto newcomer could surpass Ethereum as the second-largest crypto asset by market cap. in 2021.
Tether could surpass ETH in market cap next year
It’s been highlighted that USDT was able to overtake XRP this year in order to become the third crypto on CMC, right after BTC and ETH.
The most important stablecoin has seen massive surges since the coronavirus-related market crash from back in March this year.
In a new edition of the Bloomberg Crypto Outlook, McGlone revealed that he believes that the coin’s market cap will only continue to increase.
“The rapid rise in the market cap of stablecoins indicates that central bank digital currencies (CBDCs) are a matter of time, in our view. It should take something significant to stall the increasing adoption of Tether, the top stablecoin, which is on pace to match the capitalization of Ethereum in a bit less than a year, based on the regression trend since the start of 2019,” he said.
This is a pretty bold prediction, but it remains to be seen whether it turns into reality or not.
McGlone also highlighted that USDT “represents what many of the so-called cryptocurrencies aren’t: a stable form of payment.”
He said that assets are migrating from the still-deflating crypto bubble of 2017 into Tether.
Check out more details in Bloomberg’s notes.
Bold predictions for Bitcoin
He also had some pretty bold predictions for Bitcoin as well, saying that the king coin is on its way towards $14k and then it could reach $100k in a few years, by 2025.
The other day, Fidelity talked about the reasons for which investors are motivated to buy BTC.
“The rationale of certain bitcoin holders for allocating to bitcoin is similar to their rationale for allocating to alternative investments—notably, portfolio diversification and return enhancement,” according to the firm.