Tether’s stablecoin will soon topple both Bitcoin and Ethereum as the most valuable cryptocurrency, according to an analyst.
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, said on Wednesday that it’s only a matter of time before USDT, the world’s biggest stablecoin, will overtake the two leading digital assets.
“The most enduring trend in cryptos is Tether flippening everything,” McGlone said on Wednesday.
“There are only two left: Bitcoin and Ether.”
His comments highlight how, despite digital assets being rocked during the latest market rout, the stablecoin sector continues to grow at a staggering rate.
Stablecoins, or cryptocurrencies pegged to currencies such as the dollar or pound, are worth more than $307 billion — a rise of nearly 50% since January 2025, according to data from DefiLlama.
Bitcoin to $10,000?
Bitcoin and Ethereum enjoy market caps of $1.3 trillion and $239 billion, respectively.
Even with the latest drawdown, which saw more than $1.1 trillion vanquished from the crypto market in February, McGlone’s prognosis suggests USDT would need to grow by a factor of seven to outpace Bitcoin.
But his prediction also hinges on both Bitcoin and Ethereum dropping in value.
“Tether is on track to surpass the market cap of the current number two crypto at about $1,500,” McGlone said, referring to industry argot for when a cryptocurrency’s value overtakes another.
“Tether will eventually ‘flippen’ Bitcoin in my view, currently that would be around $10,000.”
While those prices are below where the top cryptocurrencies trade today, experts expect them to fall further.
In a note to investors on Thursday, UK bank Standard Chartered forecast that Ethereum and Bitcoin will trade around the $1,400 and $50,000 levels over the next few months.
The stablecoin engine
Just as leading cryptocurrencies drop, stablecoins, continue to rise.
Circle’s USDC, the market’s second-largest stablecoin, has risen more than 30% since this time last year.
The reasons are myriad.
“Stablecoin interest is decoupling from crypto trading,” Zach Abrams, the co-founder and CEO of Bridge, said on Tuesday. “Interest and conviction are accelerating.”
Payments giant Stripe acquired Bridge for $1.1 billion in 2024 — the largest acquisition by a major fintech.
As crypto versions of currencies, stablecoins first emerged as a way for crypto traders to exit volatile digital assets without having to cash out completely into fiat.
These days, however, such digital assets are increasingly used in sectors unrelated to speculation.
Deel, which offers compliance and payroll services to remote-first companies across more than 150 countries, announced in August that businesses could fund their payroll using USDC.
In an October interview, Tether CEO Paolo Ardoino said that as much as 60% of USDT’s use is for commodity trading, remittances, cross-border payments, and invoice settlement.
Liam Kelly is DL News’ Berlin-based DeFi correspondent. Have a tip? Get in touch at liam@dlnews.com.
