A written report from Bloomberg that provides a crypto market outlook for June says that it expects Tether (USDT) to surpass Ethereum (ETH) in market capitalization.

The report notes the growth of Tether's market capitalization as one of the principal drivers for the appreciation of Bitcoin (BTC):

"Interest in digital links to the dollar represents the need to transact and store value in the globe's reserve currency without an intermediary."

Ether live in Bitcoin'southward shadow

Recently, the stablecoin has overtaken XRP (XRP) at the number three cryptocurrency by market cap. Bloomberg asserts that it will non stop there but will march straight pass Ether to the second spot:

"Absent-minded an unlikely reversal in predominant crypto trends, it should be a matter of time until Tether passes Ethereum to have the No. 2 spot in total assets behind Bitcoin. Benefiting from widespread adoption with a viable case as a proxy for the world's reserve currency, there seems lilliputian to stop the increasing adoption of the dollar-linked stable coin."

At the aforementioned time, the study contends that Ether lives in Bitcoin'southward shadow and has no buoyancy of its own:

"We run across piddling upside in the ETH price absent a rise tide from Bitcoin. The pre-eminent crypto is breaking away from the pack in terms of adoption and is supported by near-ideal macroeconomic conditions for stores-of-value among quantitative easing."

On the dollar'south shoulders

Despite the massive U.S. stimulus packet, the dollar keeps appreciating against other major currencies. As such, stablecoins like Tether that provide admission to the dollar are gaining traction besides, the report contends.

ether Move Along With The Dollar

Tether Movement Forth With The Dollar. Source:  Bloomberg.

Both Bitfinex and Tether have recently been plagued with legal bug that may present a real challenge to its future success.