- Ethereum (ETH) shows a stagnant market capitalization value.
- Tether (USDT) continues to grow its market capitalization.
- USDT will replace ETH on its current crypto market ranking.
The crypto market continues to evolve as different kinds of projects are created for the benefit of both users and investors. Today, the total crypto market capitalization reached $368 billion.
These numbers are expected to rocket high as more projects drive the demand for cryptocurrency. Among all the cryptocurrencies in the market, Ethereum (ETH) and Tether (USDT) are the digital assets that are most talked about.
Ethereum on Slow Phase
In 2019, Ethereum opened the year with a good market capitalization of almost $8.56 billion. This value makes the crypto the second-highest digital asset in the crypto world in terms of market capitalization.
Based on the graph above, the crypto’s market capitalization has experienced high and lows in the succeeding months. This is primarily because of new start-ups and whales that both hyped and dumped the crypto; causing its volatility. Between 2019-2020, the market capitalization of ETH stayed below $30 billion. Hence, showing a stagnant market cap status.
Today, the market capitalization of ETH amounts to over $43 billion. The rise of the DeFi space affected the rise of its market cap, since most of its protocols use Ethereum as their underlying technology.
Although, if Ethereum 2.0 deploys successfully in the future, this might have a huge positive impact on ETH’s price as well as its overall market cap.
Tether on the Rise
Unlike Ethereum’s stagnant market cap performance, Tether performed well from last year until today.
As seen in the chart above, USDT started the year of 2019 with a market capitalization amounting to $1.8 billion. As the months go by, the crypto market capitalization increased gradually. Eventually reaching $4.54 billion in the first quarter of 2020.
Today, the crypto’s market capitalization value stands over $15 billion. This displays a growth rate of 242.21% since January 2020. If this trend continues, the crypto might overtake ETH in its current market ranking next to Bitcoin, according to Bloomberg’s Crypto Outlook report for Q4 2020.
Pegged to the price of the US dollar, USDT went live on the OMG Network value transfer layer to reduce Ethereum’s congestion and gas fees. Moreover, it is the first stablecoin to be launched on Solana, allowing faster transactions and cheaper DeFi applications.
Yet, other stablecoins such as social media giant Facebook’s Libra (LBR) should work on its regulatory approach to gain support from the world’s financial leaders upon launching.