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Ethereum, the crypto-largest market’s altcoin, has had a successful year. As 2021 start, ETH was worth just more than $720 on the indexes. However, at the time of publication, the altcoin was trading for just over $3,093, with the crypto reporting YTD returns of more than 275 percent.
Several reasons have now led to ETH surging as it has this year, fueling even higher hopes. These considerations have also catalysed sentiment in favour and against one primary question: Is ETH likely to flip BTC anytime soon?
This was one of the subjects of discussion during a recent interview hosted by Su Zhu and Hasu with CryptoCobain. The popular trader and analyst believes that now, “the bull case for Ethereum is stronger than ever.”
This, he claims, is due to the trends around ETH 2.0 and the increasing curiosity in areas such as DeFi. “A lot of improvement in Ethereum tokenomics,” he said, has also fuelled Ethereum’s bull run.
Is this, though, sufficient to flip Bitcoin in the future? Yes, CryptoCobain concluded, adding that while such a shift would be transient, it is “inevitable” since Ethereum has a broader macro-view than Bitcoin.
Although there has been discussion of ETH flipping BTC in the past, most of the group believe that such a situation would be short-lived. Su Zhu and CryptoCobain hold this view, with the latter suggesting that ETH flipping BTC would pose concerns about longevity, causing trading pressure in the altcoin market to reach previously unprecedented heights.
Asserting that such a flip, if it does happen, should be stronger, the trader went on to say,
“What’s important is to see where the altcoin’s price settles after the market’s parabolic rise. If you have a parabolic rise and then you have a new floor settling that’s 100% or 50% above the previous floor, I think that’s way more important than the peak flipping.”
How plausible is a case in which ETH flips BTC? After becoming the world’s biggest altcoin, Ethereum’s market value was just over $319 billion. At the time of publication, the value of BTC was more than $1 trillion. Although this is a significant distance, many, including the aforementioned, believe it will be closed quickly due to the fact that “many people are underexposed to Ethereum.”
With an increase in institutional acceptance predicted as a result of major banks being interested in blockchain, this prediction is likely to come true.
On the opposite, maybe looking at the market capitalisation alone isn’t enough. After all, Ethereum has traditionally underperformed Bitcoin on two counts: market cap and Google Search Interest.
Perhaps a glance at the Flippening Index would be a smarter option to determine the likelihood of anything like this happening. The average of these metrics has risen from 40.45 in early May to 62.37 at the time of publishing, according to the same. When the alt first began to break its previous ATHs in February, it was as strong as 72.45.
Furthermore, ETH has already flipped BTC on the issue of transaction count, with the measure of transaction value doing the same many times in recent months. Other indicators, such as trade volume and active addresses, have also increased.
As a result, though there is still a long way to go, Ethereum seems to be on the right track at the time of writing.
Can ETH flipping Bitcoin, on the other hand, be beneficial to cryptocurrency? That is a topic for another day, maybe when it is a bit less intimidating. However, according to @loomdart of egirl Capital,
$BTC‘s beauty comes from the fact that its very “good enough” at being $BTC. You can’t compete with $BTC because most of it’s value comes from the fact its perfectly scarce+decentralized$ETH “flipping” $BTC would honestly be a very bearish scenario for crypto because of this
— loomy21☀️☀️☀️ (@loomdart) April 26, 2021