Bloomberg Intelligence commodity strategist Mike McGlone says a relative crypto newcomer could surpass Ethereum as the second-largest crypto asset by market capitalization in 2021.
Tether (USDT) overtook XRP in 2020 to become the third-largest crypto by market cap, after Bitcoin and ETH. The dominant stablecoin has seen massive surges since the coronavirus-related market crash in March, and it currently has a cap of about $15.7 billion, according to CoinMarketCap.
In a new edition of the Bloomberg Crypto Outlook, McGlone says he thinks that the ballooning 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