Bloomberg has said that it should not be a surprise when Tether finally overtakes Ether as the second most popular cryptocurrency. He is optimistic that the strength of the dollar will give support to this.
Bloomberg’s crypto market outlook for the month of June hints that Tether’s market cap (USDT) is meant to surpass that of Ethereum (ETH).
According to the report, Bitcoin is doing so well now as a result of Tether’s influence:
“Interest in digital links to the dollar represents the need to transact and store value in the world’s reserve currency without an intermediary.”
Ether depends on Bitcoin to survive
Tether recently took the third spot displacing XRP to get there. But Bloomberg believes that is not the finishing line for the stablecoin. Bloomberg puts it this way:
“Absent an unlikely reversal in predominant crypto trends, it should be a matter of time until Tether passes Ethereum to take the No. 2 spot in total assets behind Bitcoin. Benefiting from widespread adoption with a viable case as a proxy for the world’s reserve currency, there seems little to stop the increasing adoption of the dollar-linked stable coin.”
In the same report, Ether has been said to gain the support of Bitcoin. It says without Bitcoin, Ether would be nowhere. The report says:
“We see little upside in the ETH price absent a rising tide from Bitcoin. The pre-eminent crypto is breaking away from the pack in terms of adoption and is supported by almost-ideal macroeconomic conditions for stores-of-value amid quantitative easing.”
Gaining the dollar’s buoyancy
Although the US has spent a lot this period, the dollar hasn’t suffered but instead continues to rise in value. This has made the stablecoins to also improve and one of them is Tether.
However, things may not be so smooth for Tether after it has been plagued with allegations with Bitfinex about manipulating the crypto market.