Tether attack on Ethereum: Will USDT soon be the number 2 of all crypto currencies?
Tether (USDT) and Bitcoin (BTC). The two crypto currencies benefit from each other: with Tether, FIAT money can be quickly exchanged for cryptos. The picture shows a Bitcoin and a Tether coin.
While crypto currencies such as Bitcoin (BTC), Ethereum (ETH) or Ripple (XRP) have been the focus of attention in recent days, the Stablecoin Tether and Bitcoin Circuit has once again increased its available range. In this article we want to look at the extent to which tether (USDT) has already grown this year. Does this mean that Ethereum is threatened with an attack and that USDT will soon be the second largest crypto currency after Bitcoin?
Will there be an attack on Ethereum in 2021?
There are few crypto-currencies that are discussed as controversially as the Stablecoin Tether.
In the past, scandals about possible money laundering and market manipulation repeatedly showed how dangerous Stablecoin can be for the crypto ecosystem.
Despite all this evidence, tether is by far the largest and most important Stablecoin. In this respect, there are also voices saying that a Bitcoin price increase would not take place without USDT.
Let us now take a look at how market capitalisation has developed this year alone. Let us first look at the coinmarketcap chart.
Tether USDT Coinmarketcap
Here we can already see at first glance that there has been a massive increase in supply and thus also in market capitalisation. While the value at the beginning of the year was still around 4 billion US dollars, the tether (USDT) market capitalisation is now almost 19 billion US dollars.
It is also striking that there were sharp increases until September this year. Since September, however, there has been a continuous increase.
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Paolo Ardoino shows development of the offer
Paolo Ardoino, CTO of Tether and Bitfinex, showed us the exact development of the market capitalisation. In the following Twitter series you can see how much market capitalisation was added in which period.
– Paolo Ardoino (@paoloardoino) November 26, 2020
Assuming that tether maintains this growth rate, USDT could also soon replace Ethereum.
In such a scenario, Stablecoin would be the second largest crypto currency after Bitcoin.
The Bloomberg team published in this year’s Crypto-Outlook from October the probabilities and thoughts on such a flipping-out. They said:
If the trends remain the same, we expect Bitcoin to be No. 1 and Tether to be No. 2 next year.
The team cited the demand for a digital equivalent of the US dollar as the main reason for this, which at the same time paves the way for Bitcoin investments.
The market capitalisation of Tether could exceed that of Ethereum if demand for Bitcoin and a dollar counterpart remains the same.