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It is a matter of time before Tether's market capitalization overtakes Ethereum :Bloomberg

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Written by   90
1 month ago

Expanding demand for tethers

USDT's market capitalization currently stands at around $9 billion , surpassing Ripple (XRP) last month and rising to third place. On the other hand, the market capitalization of ETH is 22 billion dollars.The USDT is continuing to grow as it pegs to the US dollar, which is used as the world's reserve currency .

The value of the US dollar is declining compared to gold and bitcoin (BTC), but it is still more valuable than other fiat currencies.

He said the demand for USDT is increasing as one of the ways to use the US dollar. Below is a graph showing the market capitalization of USDT (white) and the value of the US dollar against other currencies (pink). Recently, as the US dollar strengthens, the USDT market capitalization tends to rise.

Bloomberg

He explained that the attractiveness of stable coins such as USDT is that they do not require an intermediary and their value is stable compared to other virtual currencies.

On the other hand, ETH says that if the price is not raised to BTC, it is unlikely that the price will rise, and unless there is a major trend shift, the market capitalization of USDT is likely to overtake ETH.

 Bloomberg (green line is ETH market capitalization, white line is USDT market capitalization)

Bloomberg also said the USDT pegged to the US dollar would help BTC price increases. In this report, BTC is expected to break through the 2017 bubble high of about 20,000 dollars .

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Written by   90
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