Tether Overtaking Bitcoin and Ethereum Is Just A Matter Of Time: McGlone
Tether’s USDT may be on track to surpass both Bitcoin and Ethereum in market capitalization as stablecoins continue expanding despite broader crypto market weakness, according to Bloomberg Intelligence strategist Mike McGlone.
McGlone described the trend as “Tether flippening everything,” arguing that only two assets now stand ahead of USDT — Bitcoin and Ethereum. In his view, it is increasingly a matter of time before the dollar-backed stablecoin climbs higher in the rankings.
Tether is currently the third-largest cryptocurrency in market value. While Bitcoin’s market cap hovers around $1.3 trillion and Ethereum’s near $239 billion, the total stablecoin sector has surged past $307 billion — up roughly 50% since January 2025.
That growth has come even as more than $1 trillion was wiped from the broader crypto market during the latest downturn. For McGlone, the divergence is significant: stablecoins are rapidly growing while the rest of the crypto assets are face price pressure.
He has previously warned that Bitcoin could fall toward $10,000 in a severe macro downturn. Meanwhile, Standard Chartered recently projected that Bitcoin and Ethereum could trade near $50,000 and $1,400, respectively, in the coming months. Further declines in the top two cryptocurrencies would narrow the gap with USDT considerably.
Stablecoins Move Beyond Speculation
Unlike Bitcoin and Ethereum, which remain closely tied to market cycles, stablecoins are increasingly used for real-world financial activity.
The second-largest stablecoin, USD Coin, has grown more than 30% year-on-year. Industry executives say demand is becoming less dependent on trading activity and more connected to payments, payroll, remittances, and cross-border settlements.
Tether CEO Paolo Ardoino has stated that roughly 60% of USDT usage now stems from non-speculative use cases, including commodity trading and international payments.
Against that backdrop, McGlone’s forecast reflects a broader structural shift: as stablecoins entrench themselves as digital dollar infrastructure, USDT could ultimately surpass Ethereum — and potentially even Bitcoin — not through volatility, but through sustained and utility-driven growth.