Why the USDT stablecoin could challenge Bitcoin and Ethereum for crypto leadership

Analyst Mike McGlone has sparked new debate by suggesting the USDT stablecoin may one day overtake Bitcoin and Ethereum in overall crypto market influence.

Mike McGlone’s bold forecast on shifting crypto power

Bloomberg Intelligence strategist Mike McGlone has argued that the USDT token could ultimately eclipse both Bitcoin and Ethereum in market prominence. His view, shared in recent analysis, is not based on speculative rallies but on long-term structural forces shaping the digital asset industry.

According to McGlone, dollar-pegged digital assets are positioned to capture sustained demand as investors seek safety, liquidity, and easy global access. Moreover, he believes this preference for stability over volatility could gradually shift leadership away from classic crypto assets toward stable-value tokens.

Such an outcome would mark a historic change in a sector where Bitcoin and Ethereum have dominated since at least 2015. For more than a decade, these networks have defined crypto’s narrative around decentralization, scarcity, and innovation. However, if stable-value tokens rise above them, the definition of leadership in digital assets could be rewritten.

Why the USDT stablecoin keeps expanding worldwide

The USDT token is issued by Tether as a dollar-pegged digital asset designed to maintain a one-to-one value with the US dollar. This structure makes it fundamentally different from traditional cryptocurrencies that fluctuate freely in price.

Traders increasingly rely on USDT for day-to-day liquidity. During periods of extreme volatility, they park capital in the token rather than exiting exchanges entirely. Moreover, many trading platforms use it as a primary quote asset, pairing it with a wide range of cryptocurrencies to streamline pricing and settlement.

Cross-border users also lean on USDT to move value quickly across jurisdictions. Instead of depending on slow or expensive banking channels, they send tokenized dollars on-chain. That practical use in daily transactions continues to deepen stablecoin dominance within the crypto economy.

Unlike Bitcoin and Ethereum, USDT does not depend on price appreciation to remain relevant. Its strength lies in transaction volume, settlement activity, and integration into financial applications. That said, as more participants use it as a transactional currency, its overall footprint naturally grows.

The shift from speculation to stability

For years, Bitcoin has been framed as digital gold, while Ethereum has served as a base layer for smart contracts and decentralized applications. These narratives helped fuel explosive bull markets. However, harsh drawdowns during each cycle have repeatedly highlighted their volatility.

During turbulent phases, investors frequently rotate capital into dollar-pegged tokens like USDT. This move allows them to stay inside the crypto ecosystem while sidestepping sharp price swings. Moreover, institutional players that require predictable settlement values often favor stable pricing over exposure to market risk.

In regions facing local currency instability, demand for digital dollars becomes even more evident. People increasingly use stable-value tokens as substitutes for physical cash or fragile domestic currencies. This behavioral shift supports McGlone’s thesis that structural demand for stability may ultimately outweigh speculative interest.

Could stablecoin dominance really surpass Bitcoin and Ethereum?

As of today, Bitcoin and Ethereum still command higher market capitalizations than the USDT token. However, market leadership in crypto has never been static. Each cycle has introduced new categories, from smart contract platforms to DeFi and non-fungible tokens, proving that hierarchy can change.

If stable tokens continue to capture a rising share of transaction volume and institutional workflows, their capitalization could expand substantially. Moreover, stablecoin dominance in trading pairs and settlement flows already signals growing structural importance beyond speculative phases.

On many days, USDT ranks among the highest traded digital assets by volume worldwide. Its liquidity routinely exceeds that of individual cryptocurrencies, including some large-cap tokens. These patterns show that users treat it less as an investment and more as core transactional infrastructure.

McGlone suggests that if global finance integrates digital dollars more deeply, the usdt stablecoin could become a primary gateway between traditional markets and blockchain-based systems. Governments are actively debating central bank digital currencies, while payment providers explore distributed ledger rails. Stable-value tokens sit at the intersection of these developments.

Crypto market trends reinforcing the stablecoin story

Several broader crypto market trends reinforce the strategic role of stable-value tokens. First, policymakers in multiple jurisdictions are increasingly focusing on frameworks for regulated dollar-pegged assets. This emerging stablecoins regulatory landscape often treats them as more predictable instruments compared with highly volatile tokens.

Regulatory progress, while uneven, tends to support institutions that want controlled exposure to digital assets. As rules clarify reserve management, transparency, and redemption rights, large investors may feel more comfortable using stable tokens for settlement and cash management.

Second, decentralized finance has embedded USDT and other stable-value assets into its core infrastructure. Lending protocols, derivatives platforms, and yield strategies frequently use them as collateral and base currency. Moreover, this integration creates persistent demand that is largely independent of speculative price cycles.

Third, global remittances and cross-border payments remain a powerful driver. Users in developing economies often prioritize instant access to US dollars over exposure to volatile crypto assets. In this context, USDT offers speed, accessibility, and a currency they already recognize. That functional advantage supports long-term adoption curves.

The broader implications for the digital asset economy

McGlone’s analysis highlights a deeper transition underway across digital markets. Crypto is slowly moving beyond its early focus on ideological decentralization and speculative trading. Instead, it is being woven into the fabric of traditional finance, from payments to capital markets infrastructure.

Stable-value tokens act as a practical bridge between these two worlds. They enable dollar-denominated transactions on public blockchains while remaining familiar to institutions and retail users alike. Moreover, their growing share of volume indicates that real-world use cases are gaining ground on pure speculation.

In that sense, stablecoin dominance can be read as a sign of maturation. It suggests that users increasingly prioritize reliability, liquidity, and settlement efficiency. The USDT token, with its entrenched role in trading, DeFi, and remittances, may become a symbol of this next phase in digital finance.

Whether it ultimately overtakes Bitcoin and Ethereum in capitalization remains uncertain. However, the very fact that analysts now entertain this possibility underscores a turning point. Crypto leadership may soon be defined as much by stability and scale as by volatility, scarcity, and visionary technology.

In summary, McGlone’s forecast forces markets to confront an important question: if users continue to favor stable-value infrastructure over volatile assets, the balance of power across digital finance could shift more dramatically than many expect.