Is Tether’s Crypto Dominance A Forebode For Facebook’s Libra?

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Many reports were to be read this week claiming that Tether would soon become the dominant force in the cryptosphere. Classic Wall Street investors seem to prefer trading in stablecoins as they do exactly what their name says, aka be stable.

Earlier this week On-chain analytics firm Glassnode showed a revealing graph which could see a straight line ascending in an almost 45 degree angle. Turns out it was the growth of $USDT transaction volume.

Tether’s transaction volume surpasses $600 billion as it cements preeminent position in crypto exchange trading, according to on-chain analytics provider Glassnode https://t.co/DBlIXTtLri

— Joe Morgan (@jjoemorgan) October 16, 2020

We may talk of boring Bitcoinon these pages from time to time, but Bitcoin’s reluctance to trade outside of the $10k to $12k range over the past few months is nothing compared to the steady hand that Tether seems to bring to the board.

Bloomberg bullish on Tether

Bloomberg senior commodity strategist Mike McGlone recently published his company’s Crypto Outlook for Q4 of this year, and in that document Tether is allowed to play a major role.

Mike said:

Tether represents what many of the so-called cryptocurrencies aren’t: a stable form of payment.

The people over at Tether themselves don’t really think of their coin as a competitor to Bitcoin’s dominance though, but rather as a competitor. Tether’s CFO Paolo Ardoino claimed that:

Aside from bitcoin, of course, which is the king of all cryptocurrencies, tether is in some respects the digital asset of our times.

Vitalik Buterin better watch out though, because Mr Ardoino also stated that:

We don’t see ourselves as competing with ethereum. Nevertheless, eclipsing ethereum’s market capitalization … will be a powerful statement. Tether once again proves itself to be one of the most trusted assets in the crypto space.

Sign of things to come?

If this is the dominance of Tether at this moment already, how will things develop when Facebook finally brings out Libra, it’s long awaited stablecoin for which even the G7 is fearful?

More close to home, even the EU has expressed concerns about the future crypto of Facebook as it would mean that Europe would give up control to a US company when it comes to money matters.

Interesting times.