Tether (USDT), the world’s largest stablecoin, is set to dethrone Ethereum in market capitalization this year. This projection has been made by Samson Mow, a digital asset investor, who mentioned the continual development of USDT as one of the main reasons.
According to Mow, the recent performance of the stablecoin suggests that there is an excellent likelihood that what the crypto community has been calling for has been termed as “flipping” from taking place. He made this prediction in a comment to this celebratory post by Paolo Ardoino, the CEO of Tether and Bitfinex, announcing that USDT has achieved a new milestone in its capitalization.
The USDT market value is now more than $150 billion, another all-time high. Compared to this, Ethereum has a total market cap of $303 billion. For Tether to achieve a higher market cap than Ethereum, its valuation must be doubled, irrespective of Ethereum’s constant price.
As Mow said, this transition could be made within the current market cycle. As mentioned, Ethereum has been under constant criticism henceforth for a less-than-impressive performance during the current cycle, thus speeding up Tether’s upward movement.
Tether Strengthens Position as Dominant Stablecoin
In addition to its overall market growth, USDT has achieved an essential structural milestone. For the first time, it has exceeded the supply on its Tron blockchain compared to Ethereum. This change is mainly because of Trons’ lower transaction charges and processing speed.
Smaller chains like Solana, Avalanche, and TON also support USDT, but these versions represent a tiny amount of the supply. Most stablecoin activity is still dominated by several significant issuers whose share in the stablecoin market exceeds 90 percent, with the USDT, USDC, and USDe at the top.
Nevertheless, stablecoins cumulatively are far behind Bitcoin’s total market capitalization. As of press time, the aggregate value of the Bitcoin market is still eight times more than the sum of all stablecoins.
Paolo Ardoino earlier suggested that a $1 trillion valuation is the next for Tether. This would entrench its place in the crypto financial ecosystem as a leading force if it is achieved.
Conclusion
Tether’s expansion and dominance in the stablecoins market puts it on a collision course with Ethereum’s long-seated position. As the leaders in the industry prescribe, the stablecoin can take the second rank by market cap even before the year is over.
