Stablecoin Tether seems to be growing exponentially as it recently toppled Bitcoin Cash to the 5th place and Tether now stands as the 4th largest currency by market cap on CoinMarketCap’s top hundred cryptocurrencies.
While the last few months recorded a continuous trend of Tether seen was gradually migrating to the Ethereum Network and it was further reported that the stablecoin had acquired notable place on the ETH blockchain. Tether clogged the Ethereum network as it reportedly aided $417,000 worth of transactions on the network. Additionally, the network was also experiencing a problem of network saturation.
As per Coinmetrics.com, the largest stablecoin seems to be firmly moving its supply to the ERC-20 token on the Ethereum blockchain from the Omni protocol. While Tether hasn’t issued any official announcement about the same, the present situation seems to be the stablecoin’s demonstration of a diversified approach, instead of dwelling on Omni’s unstructured protocol.
Omni still seems to still dominate the space, as out of 4.1 billion USDT units, Omni managed 2.15 billion while only 1.96 billion units were handled by Ethereum. On the other hand, other networks held very little USDT.
The latest announcement from the Malta-based cryptocurrency exchange, Binance might have had a role to play as it revealed that it wouldn’t be accepting Omni-based USDT deposits. The exchange permits only USDT-based deposits carrying ERC20 address on the platform.
Furthermore, on 16 September, Tether Treasury burned about 400 million units of Omni tokens. Consequently, Tether issued the same amount on the Ethereum blockchain. Tether has been frequently printed on the Ethereum network, over the last couple of days.
Additionally, Bitcoin’s market cap and realized cap had encountered a slump of 3.1% and 0.4%, respectively over the last seven days. While Ethereum’s performance was comparatively better in comparison as it recorded a surge of 1 percent in market cap and 0.7 percent in terms of realized cap.
Bitcoin can reach $25K if usage crosses 1M people: Thomas Lee
Managing Partner and Head of Research at Fundstrat Global Advisors, Tom Lee, recently made an appearance on CNBC‘s ‘Street Signs Asia‘ segment to talk about Bitcoin price movements in the future. Lee also spoke about why he thinks Bitcoin will touch $25K by 2022.
According to Lee, for an industry that’s over a decade old, these are still early days for digital assets. However, as time passes, it will become very institutional, he said. Fundstrat’s Lee added,
“Over time, it’s going to become an asset class, and once we hit that it’s actually another hockey stick.”
When asked about his prediction for the king coin’s price, Lee said that it had been established back in 2017 as a five-year prediction. According to him, the predicted goal would be easy to achieve due to cryptocurrencies being network value assets — the more people that hold it, the greater its value.
“In fact, it’s a log function, so if you double the users you get a quadrupling of value, and to go to $25,000 you essentially need a 4x rise (a little bit less than that) which means you need to double the number of people who hold Bitcoin.”
According to Lee’s estimates, there are under half a million people in the world who own and use Bitcoin widely today. He also compared Bitcoin to Internet stocks such as FAANG and attributed 70% of their returns since the IPOs to the growth of the Internet over that period of time.
“So in other words, it was a log function of the Internet growth, and that’s how cryptocurrencies are going to work. That’s just saying if you take it to a million users, you could get to $25,000.”