2021 is expected to upset cryptocurrencies’ positions where Bitcoin would remain at the top and Tether may overtake Ethereum.
A recent report regarding the future of the crypto industry has been made public. The report suggests that by the end of 2021 major upset in the positions of cryptocurrencies will take place. Bitcoin will be in the leader’s chair while Tether will surpass Ethereum in terms of market capitalization, the report suggested.
Analysts are expecting that by the end of next year Tether will overpower Ethereum. If this major upset is caused then it will give passage to Central Bank Digital Currencies (CBDCs) and Stablecoins for mass-adoption.
Mike McGlone of Bloomberg has also issued a fourth-quarter report for the year 2020. In his report, he suggested that Tether (USDT) will become the number two cryptocurrency by pulling off Ethereum’s second position. The report relies on the fact that the Tether’s market capitalization is increasing at a rapid pace. It is expected that by the end of 2021 it will go above the Ethereum’s market capitalization.
Talking about the statistics, McGlone stated that the current market cap of Ethereum is US$ 43 Billion. However, in 2019-2020 it was under US$30 Billion but DeFi frenzy helped its market cap to receive another US$13 Billion.
In contrast with Ethereum, Tether has been undergoing a rapid increase in its market capitalization. Stablecoin started with a market capitalization of US$ 4 Billion in 2020. Currently, it is nearing US$ 16 Billion. This shows that at the end of 2021 or in the start of 2022 it will surpass Ethereum in terms of market capitalization.
McGlone also said that the statistics show an alarming situation for Ethereum. If Tether continued to grow at such a fast pace then Ethereum will lose its second position in the crypto world.
However many do not agree with the prediction of Tether taking over Ethereum. Yet the unrest is caused amongst Ethereum’s investors which will further worsen the condition for Ethereum.
On the other hand, many crypto enthusiasts are predicting that Bitcoin will now not go low under US$11,000. Any change in Bitcoin that will occur in the future will be over and above US$ 11,000.