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ETH overtakes BTC and is helped by USDT

2 min read

 

ETH vs.  BTC
ETH vs. BTC. Source: Shutterstock YanaSh

Can ETH overtake BTC in the future? It is possible. In case the whole trading world is converted to USDT. If everyone uses the digital dollar, it is highly likely that ETH will move to 1st place!

ETH needs USDT

Mike McGlone, Bloomberg’s commodity strategist, dealt with this interesting speculation. According to him, it is only a matter of time before the USDT starts to be used in the whole sphere of trading. Why USDT? Stablecoins were created to provide traders with a safe haven from the dangerous volatility of cryptocurrencies. By using USDT, you can basically maintain value in the crypto markets.

“The world is moving to the digital dollar trade, it’s only a matter of time. That’s why it’s high time the US government could regulate it as soon as we crush China. “

Currently, and probably in the long run, the USD will still be a unit in the financial markets. There is not a single currency in the world that can approach the USD in terms of volume.


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USDT market capitalization

 

USDT market capitalization. Source: CoinMarketCap

Digitizing dollars

According to McGlon, this is one of the most important steps in the world of trading. BTC is well on its way to becoming a digital reserve asset. And the stablecoins themselves also play a part in this.

“The most commonly traded cryptocurrencies are essentially a digital version of the dollar.”

Can ETH overtake BTC?

According to McGlon, that’s clear.

“ETH is a kind of building block. It is a platform for the whole decentralization of finances. “

Market capitalization of ETH.

 

Market capitalization of ETH. Source: CoinMarketCap

When a new protocol was successfully introduced before the recent ETH EIP-1559, supply and availability have been reduced to less than 400 tokens per day. Given the huge demand and interest due to the NFT, for example, this is a very decent number.

“Ethereum’s performance is enormous. It has increased by almost 400%. However, I still expect BTC to reach the price of 100k, but compared to ETH and DeFi, it is a very poor performance.”

NFT is powered by ETH

Perhaps the biggest price boom of ETH came after the huge interest in the NFT. In order to buy an NFT token, you simply have to own or buy an ETH. The largest marketplace for OpenSea NFT tokens reached a monthly volume of approximately USD 3 billion.

“So we can see how demand increases and supply decreases. And it happens at the same time. ETH is well below the maximum. In my opinion, it’s only a matter of time before BTC overtakes. “

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