BlockBeats News, September 25th, Multicoin Capital co-founder Tushar Jain commented on the issue of “Tether is raising $20 billion with a $500 billion valuation,” stating that given the expected rate cut by the Federal Reserve and the market’s anticipation of an average future interest rate of about 3.6% over the next year, this would mean Tether’s revenue is $6.2 billion, resulting in a price-to-earnings ratio of about 77x.
However, factors such as the interest rate cut cycle and increased competitive pressure are bound to threaten Tether’s revenue sustainability. Nevertheless, Tether has high brand loyalty in developing countries. These users are unlikely to switch to higher-yielding stablecoins. Tether is actively working on expanding in these countries.
