What if Tether (USDT) flips Ethereum (ETH)?

[tangtangup]

Tether (USDT) is stablecoin so i think nothing will change if USDT flips ETH on the market. The roles of USDT and ETH are totally different.

[Kotone]

I think it doesnt matter at all. I dont see any use case for tether aside from neutralizer on trading when the speculative coins such as bitcoin and eth goes up and down. It does not really revolutionise the crypto adoption. Honestly many have used it but only for this purpose. There is a chance to flip the market due to volume of usdt being traded but thats the end of the road.

[pixie85]

Considering that most people "follow the money", they might invest more thoroughly in USDT than ETH itself. They don't care if it's centralized, as long as they're able to profit from it. I believe that the stablecoin craze will last for quite some time, until the demise of COVID-19. After that, USDT's position on the market might return to "pre-pandemic" levels. The fact that market cap tells nothing other than the value of all coins in circulation, should not leave us worrying about USDT replacing ETH anytime soon.

All in all, the rise of USDT's popularity in the mainstream world should be more beneficial than harmful for ETH in the long run. After all, Tether (USDT) runs on the ETH blockchain. For people to be able to send/receive USDT transaction on-chain, they're required to spend some "ETH" which serves as a fee for the smart contract to perform its operations. In case USDT goes down the drain, another centralized stablecoin will take its place on the market. Since most centralized stablecoins live on the ETH blockchain, the world's second-largest cryptocurrency by market cap has nothing to lose. Just my opinion

Well said. People like to take unneeded risk and I've seen plenty of it in the altcoin subforum where people are asking if they should invest their coins into upcoming altcoins just to catch a possible pump. They already have a volatile coin like ETH and are thinking of ways to increase the risk of holding it.

While I would never choose a centralized stablecoin over a coin that serves as its base I understand why these coins might be successful in the coming years.

[ubay]

All possibilities can happen, there is a time when a coin / token will dominate CMC. All depends on user needs.

I personally switched to ERC20 USDT because the ETH fee was huge and it was not good for my wallet.

[Argoo]

Even if the market capitalization of USDT rises so much that this stablecoin displaces ethereum from the second spot on the CoinMarketCap table, nothing will change significantly. It is unlikely that the popularity of ethereum or its price will fall from this. These coins have such different tasks and functions that it will not affect them in any way.
USDT has already moved ripple from the third position, nothing special happened.

[Abiky]

Well said. People like to take unneeded risk and I've seen plenty of it in the altcoin subforum where people are asking if they should invest their coins into upcoming altcoins just to catch a possible pump. They already have a volatile coin like ETH and are thinking of ways to increase the risk of holding it.

While I would never choose a centralized stablecoin over a coin that serves as its base I understand why these coins might be successful in the coming years.

Given that centralized exchanges dominate the crypto industry, centralized stablecoins like USDT and USDC will always be in the headlines. USDT's success will be rather beneficial than harmful to the Ethereum blockchain since people are required to use ETH as "gas" for processing USDT transactions on-chain. Tether (USDT) not only lives on Ethereum, but other Blockchain networks too. It's win-win situation for the entire crypto market. Flippening ETH as the world's second-largest crypto asset by market cap will do nothing in the long run. People will always trust ETH because it's the most decentralized altcoin in the world today. While it's possible for USDT to surpass ETH in terms of market cap, I doubt it'll ever be able to do the same with Bitcoin. Tether might continue to print more USDT tokens in order to raise the stablecoin's market cap. It's a bold strategy, as it gains the attention of newcomers in the crypto space.

Nonetheless, both USDT and ETH's adoption in the mainstream world might increase once ETH version 2.0 is released soon. With many dApps using USDT for decentralized finance (De-Fi), it's expected that both crypto assets' market cap will rise over time. Neither USDT will be able to replace ETH or vice versa since they're different from one another. In case USDT fails, other centralized stablecoins living on the ETH blockchain could gain traction leaving everything as it is right now. Just my opinion

[Kezacky]

if USDT can reverse it then ETH will remain the same, I mean it will still be used for long-term investment, investor interest will not change, moreover ETH is a giant altcoin in this industry. and according to current market cap, ETH still leads above USDT and I think ETH price will continue.

[erikoy]

No doubt tether is one of the important crypto here aside from bitcoin amd ethereum. The reason is that this crypto is stable and if whales do the trading instead of converting fiat to crypto or crypto fiat to get a stable coins which is fiat then now whales can have an option by using the stable crypto coins. This is better than converting bitcoin to fiat for all we know that it is costly during the conversion but if you do it crypto to crypto conversion then lower costs could be made. This is why whales now that are withdrawing and waiting for the best time to buy more bitcoin will use the tether crypto to store their funds. And if the right time comes to buy bitcoin then thay can easily convery tether to bitcoin with a low cost transaction.

The best time to buy bitcoin? It is when market is crashing like what happen in 2018 tha btc falls down to 4k market price.

[mindrust]

Tether's market cap is right now nearing $15 billion which is nearly 50% more than what it was only few days ago.

At the beginning of this year the mc of tether was around $4B.

That's ~250% increase in less than a year. No fucking way this can end in a good way.



To the moon!

[wanted sliter]

Currently, DEFI projects deployed on the Ethereum network are huge, and people need an asset to fix that asset when the market risk occurs so Tether will continue to stay with Ethereum. Sticking with Ethereum makes Tether looser. If there was a smart contract platform that competed with Ethereum, it would be Tronix because now Tronix has launched Justswap to compete with Uniswap.
The possibility of tether leaving Ethereum is unlikely. If that happens, a better platform than Ethereum and a more popular Ethereum would be needed.

[qwizzie]

I've seen that now USDT has reached a market cap of over $10 billion dollars (USD). The sudden rise could've been a result of the massive hype surrounding "De-Fi" and stablecoins. With Tether issuing new units (supply) of USDT, it makes me wonder whenever its "triumph" will last for long? After all, crypto land behaves in strange and bizarre ways. Imagine if USDT flips Ethereum on the market. All the eyes will be on Tether instead of Ethereum, as people are usually "following the money". I think Tether will continue to issue new coins on the Blockchain in order to maintain a high market cap ranking. Only then, USDT will stand alongside Bitcoin as the world's second-largest cryptocurrency (stablecoin) by market cap.

What do you think will happen if USDT flips ETH on the market? Will everything remain the same? Or will ETH lose attention from the mainstream world? Will USDT be able to maintain such high market cap for a long time? Your input will be greatly appreciated.

Ethereum is classed as a 'coins' on coinmarketcap --> https://coinmarketcap.com/coins/
Tether is classed as a 'tokens' on coinmarketcap --> https://coinmarketcap.com/tokens/

Comparing 'coins' with 'tokens' is like comparing apples with oranges.
Both 'coins' and 'tokens' have their own marketcap and ranking on coinmarketcap. I think investors / mainstream world will understand the difference between the two.  

Also remember that tokens running on one single coin's blockchain will have a single point of failure (which is the network, over which they don't have any direct control).
You can see that happening with Ethereum right now that has network congestion, high gas fees, even higher fees for interacting with DeFi protocols and network security that is getting threatened.
All tokens projects operating on the Ethereum blockchain will be negatively impacted equally by all that.

From a decentralization point of view, having so many tokens projects operating on one single blockchain that can not scale, is a terrible concept.

[Abiky]

Ethereum is classed as a 'coins' on coinmarketcap --> https://coinmarketcap.com/coins/
Tether is classed as a 'tokens' on coinmarketcap --> https://coinmarketcap.com/tokens/

Comparing 'coins' with 'tokens' is like comparing apples with oranges.
Both 'coins' and 'tokens' have their own marketcap and ranking on coinmarketcap. I think investors / mainstream world will understand the difference between the two.

Also remember that tokens running on one single coin's blockchain will have a single point of failure (which is the network, over which they don't have any direct control).
You can see that happening with Ethereum right now that has network congestion, high gas fees, even higher fees for interacting with DeFi protocols and network security that is getting threatened.
All tokens projects operating on the Ethereum blockchain will be negatively impacted equally by all that.

From a decentralization point of view, having so many tokens projects operating on one single blockchain that can not scale, is a terrible concept.

Exactly. Both Ethereum and Tether are different from one another. But if Tether goes above Ethereum in terms of market cap, you'll expect most of the attention to go towards USDT. The average person does not care if cryptocurrencies are different from the other, as market cap is taken into consideration. If Tether becomes the second crypto asset besides Bitcoin, people might invest heavily into it. While prices will remain the same ($1 USD per coin), Tether will become the biggest stablecoin in the world. One interesting fact is that Tether lives on multiple blockchain networks. Its rise will not only benefit Ethereum but also Tron, Bitcoin Cash, Bitcoin (via Omni), Algorand, and Solana too. Since people are required to own one of the aforementioned cryptocurrencies to be able to transact with USDT, it's a win-win situation for the entire crypto/Blockchain space.

With Ethereum's current high fees and slow transaction confirmation times, I doubt people will continue to use USDT on the ETH blockchain. Tether will gain prominence on other scalable blockchain networks like Tron and Algorand in order to boost adoption of stablecoins in the mainstream world. Of course, we cannot deny that Tether has some shady practices. It's constantly "printing" new USDT tokens across multiple blockchains, resulting in a higher market cap. If it goes down the drain, it might take other cryptocurrencies down with it. That's largely because the market is extremely dependent on stablecoins to succeed. And since Tether is the largest stablecoin in the world, it can either positively or negatively affect the entire crypto market in a blink of an eye. At least, we have many other stablecoin alternatives to choose from. Other centralized stablecoins like USD Coin and Binance USD seem to be gaining prominence in the mainstream world. They might take Tether's place in the future if it goes down the drain. Surpassing ETH or not, it wouldn't make much of a difference since stablecoins are just a "glorified" version of Fiat. Technically speaking, cryptocurrencies and stablecoins are completely different from each other. Just my opinion

[Princejebs]

I don't want to think about it but it's possible and I hope tether can account for all this minted Usdt so the regulation body don't charge them with manipulation of market as usual.
The rate at which tether are been converted from tron blockchain network to ethereum, I dnt think they want excess supply because of inflation.

[shakesbear]

Many businessmen use USDT for transfers to avoid taxes, for example. The popularity of stable coins is growing, they have low volatility, high speed, low fee, I think that in the end Tether took the first line CMC.

[ololajulo]

Tether and Ethereum are serving different purposes in this Defi market. Tether is rarely used as transaction fee and this is pivotal in the price movement in this market, this give ethereum traders more reason to hoard and trade than Tether. Tether is satisfying all the financial function that Defi demands, eventually increasing the size of stable coin in this market. The larger the crypto space the stronger the financial capacity, Stable coin can always defend the space and we could see more accumulation/swap.

[Abiky]

Tether and Ethereum are serving different purposes in this Defi market. Tether is rarely used as transaction fee and this is pivotal in the price movement in this market, this give ethereum traders more reason to hoard and trade than Tether. Tether is satisfying all the financial function that Defi demands, eventually increasing the size of stable coin in this market. The larger the crypto space the stronger the financial capacity, Stable coin can always defend the space and we could see more accumulation/swap.

Exactly. Since Tether (USDT) is an ERC-20 token, people are required to use ETH as "gas" to cover transaction fees on the network. This is more beneficial to Ethereum than all the other way around. With Tether living on more than one Blockchain network, underlying cryptocurrencies can benefit the most on the market. Personally, I think ETH will do fine even if USDT goes all the way to the moon. The Tether company might continue increasing the supply of the USDT stablecoin in order to boost its market cap. But what matters is mainstream adoption above anything else. People linking market cap to a cryptocurrency's success got it all wrong. I've seen many cryptocurrencies on the market with a small market cap, providing active development and innovation. The market capitalization of a cryptocurrency is just an indicator of the value of all coins in circulation relative to Fiat. But most people don't see it this way.

With or without Tether, Ethereum will continue to dominate the smart contracts industry. That's largely because ETH has a large number of developers, individuals, and businesses backing it every step of the way. It's no wonder why ETH has retained its position as the second-largest cryptocurrency by market cap. Tether flipping Ethereum on the market won't make any difference since both cryptocurrencies are distinct. Comparing them is like comparing apples vs oranges. By all means, Tether's success will be Ethereum's success too. It's like a win-win situation for both crypto assets on the market. Just my thoughts

[rexxarofmoknathal]

Everything will remain the same just like when USDT was replacing ripple in the third position of CMC. More than 6 billion USDT already issued on ethereum chain

https://etherscan.io/token/0xdac17f958d2ee523a2206206994597c13d831ec7

Mostly people prefer to use ERC20 USDT ratherthan omniUSDT or USDTtron

I personally always use ERC20 USDT

I agree with you and it does seem that most people prefer ERC20 USDT. Have a look at the DeFi launching projects and you will see that for all of these tokens you need ERC20 USDT. Most DeFi token sales go through an ERC20 system - coincidence? I think not.

It is possible that this trend burst at the same time as DeFi came about, that is a possibility indeed and can easily be traced back - but I'm not going to do that here, I'll only present the possibly 

[semobo]

Many businessmen use USDT for transfers to avoid taxes, for example. The popularity of stable coins is growing, they have low volatility, high speed, low fee, I think that in the end Tether took the first line CMC.

For any kind of business they were using? No! No one will hold USDT just to avoid taxes because it is traceable unlike other decentralized cryptos and can be put on hold in your wallet itself by USDT team.Probably they are using for remittance services to avoid huge fees all over the world and any other crypto will do the same with no issues.

[ven7net]

I've seen that now USDT has reached a market cap of over $10 billion dollars (USD). The sudden rise could've been a result of the massive hype surrounding "De-Fi" and stablecoins. With Tether issuing new units (supply) of USDT, it makes me wonder whenever its "triumph" will last for long? After all, crypto land behaves in strange and bizarre ways. Imagine if USDT flips Ethereum on the market. All the eyes will be on Tether instead of Ethereum, as people are usually "following the money". I think Tether will continue to issue new coins on the Blockchain in order to maintain a high market cap ranking. Only then, USDT will stand alongside Bitcoin as the world's second-largest cryptocurrency (stablecoin) by market cap.

What do you think will happen if USDT flips ETH on the market? Will everything remain the same? Or will ETH lose attention from the mainstream world? Will USDT be able to maintain such high market cap for a long time? Your input will be greatly appreciated.

Every time, when any cryptocurrency approaches Ethereum, the question immediately arises: will it turn out that Ethereum will give up its leadership? I've seen this kind of question a few times over the years and every time Ethereum stays in second place. In general, I do not understand why this should be done? To compare? Ethereum is not just a cryptocurrency, it is a whole ecosystem that is very developed and has great support. As for USDT, all that is happening now is just the impact of the DeFi boom, nothing more.

[DENDOGODNED]

I think tether will go to the #1 spot and bitcoin will be used to back tether. Aslong as people keep panicking and jumping to tether, tether will continue to absorb.