Bloomberg: Tether's market value may surpass Ethereum next year, and Bitcoin is expected to rise to $100,000 in 2025

Original article: Cointelegraph, author: Turner Wright

Source: Odaily Planet Daily Translator: Yu Shunsui

Tether’s market capitalization could surpass Ethereum’s by the end of next year, paving the way for mainstream adoption of stablecoins and central bank digital currencies (CBDCs), a new report predicts.

The Q4 2020 Crypto Outlook Report, written by Bloomberg senior commodity strategist Mike McGlone, shows that Tether (USDT) is likely to replace Ethereum (ETH) as the world's second-largest cryptocurrency by market capitalization in 2021. The report points out that ETH's "market value has stagnated," with a market value of $43.2 billion, having remained below $30 billion for most of 2019 and 2020 before receiving a DeFi boost in late July.

On the other hand, USDT’s market capitalization has grown steadily since 2017, with only a sharp drop in October 2018; since the beginning of 2020, its market capitalization was $4.1 billion, and it “rapidly rose” to $15.7 billion in October.

McGlone said, “Something significant needs to happen to stop the growing adoption of Tether. If the current trend continues, Tether’s market capitalization could surpass Ethereum next year.”

Not everyone in the crypto community appreciates this prediction. On Oct. 11, crypto pioneer and Blockstream CEO Adam Back told his 211,500 Twitter followers that Bitcoin is the “only benchmark that matters,” as he believes most investors’ portfolios are denominated in cryptocurrencies.

“Bitcoin is already the unit of account for crypto traders. Most portfolios are denominated in Bitcoin. It’s the only benchmark that matters and you want to know if your long/short/options/yield/altcoin trading strategy is better or worse, or you can just hold. Not hodling is risking money.”

“I use stablecoins, but I don’t hold them very much because it’s shorting Bitcoin. Any strategy that doesn’t involve holding Bitcoin has a high risk of underperforming Bitcoin,” Back said.

While the Bloomberg report suggests that demand for Tether suggests the arrival of a CBDC is “only a matter of time,” it also predicts a bullish outlook for Bitcoin.

The report said that by 2025, BTC will rise from the current $11,448 to $100,000. With a fixed token supply of 21 million, the report said, "the demand vs supply indicator is still positively correlated with price."

“Bitcoin can continue to function as it has for much of its nascent history, with its price rising, albeit at a slower pace, on the back of growing adoption,” the report states.

“Most demand and adoption measures suggest that Bitcoin is more likely to continue its upward trend,” the report said.

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