Bloomberg's latest report claims: USDT market cap surpassing Ethereum is only a matter of time

The largest stablecoin in the cryptocurrency market - Tether (USDT) - has nearly doubled its market value this year, surpassing XRP in May to become the third-largest cryptocurrency by market capitalization. According to the latest cryptocurrency outlook report from Bloomberg, Tether is expected to surpass Ethereum, the second-largest cryptocurrency by market capitalization.

USDT Market Cap Doubles Since the Beginning of the Year

According to data from the Stablecoin Index platform, as shown on Stablecoin Index, the current market capitalization of USDT is $9.66 billion, which is approximately double the $4.71 billion at the beginning of the year, and the growth trend does not seem to be slowing down.

This significant growth is closely related to Tether's expansion in the DeFi field this year and its deployment on various major public chains, strategies that have further increased the liquidity and adoption rate of its stablecoin.

Overtaking Ether is Only a Matter of Time

In its latest report, Bloomberg pointed out that as a proxy tool for the global reserve currency, there seems to be nothing stopping the massive growth of the adoption rate of the US dollar stablecoin. Bloomberg further emphasized that there are no mainstream trends in the cryptocurrency market that cannot be reversed, and it is only a matter of time before Tether surpasses Ether to become the second-largest by market capitalization after Bitcoin, as Ether can only rise in the wake of Bitcoin.

"Without the upward trend of Bitcoin, we believe that there is not much room for the price of Ether to rise."

On the other hand, Bitcoin has become an almost ideal store of value during quantitative easing and macroeconomic uncertainty, standing out in terms of adoption, with Tether playing a similar role to Bitcoin. Bloomberg stated in its report that although the US dollar has relatively weakened against gold or Bitcoin during quantitative easing, it is still a strong currency compared to others.

Especially in regions with severe currency inflation such as Turkey, Argentina, Venezuela, holding US dollars or US dollar stablecoins is a better way to store value. In developing countries with less sound banking services, purchasing and managing US dollar stablecoins may be even more convenient than holding US dollars. Bloomberg concluded:

"As a US dollar trading tool without intermediaries and a safe haven in many speculative activities. Tether and stablecoins will receive increasing attention as time goes by."