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While trading below the $2500 level, Ethereum’s post-recovery rebound is faster. It’s worth noting that the volume of Ethereum options has surpassed that of Bitcoin several times in a row. Skew figures show that option volume has been steadily dropping since May 24, and is currently frequently below $500 million.
With many flippening measures like as transaction costs, value settled, and so on, the idea of Ethereum flipping Bitcoin has gained traction after the former’s market capitalization reached $281 million. The market capitalisation is one-third that of Bitcoin at the present price level. Furthermore, Ethereum’s price is still below $2500, yet it is about 12% higher than last week.
Based on the accompanying chart, implied and realized volatility has maintained above the March and April averages since the 3-month implied and realized volatility is above 7%. This measure lends credence to Ethereum’s long-term optimistic thesis.
However, the fact that ETH trade volume often outnumbers Bitcoin is exciting. Furthermore, for a while, ETH’s lack of supply story attracted demand and audience with traders; this flippening narrative is critical to ETH’s emergence as an economically significant asset. While the recent Ethereum improvements and network updates have made the flippening narrative more prominent, these incidents are increasingly regular. However, despite the competition from L2 scaling solutions, the focus may move from this narrative to fundamental strength and greater network activity in the long run.
According to the following figure, Bitcoin’s options volume has fallen below Ethereum’s many times in the last week. The decline in options volume corresponds to the decline in demand across exchanges, the decline in investment inflows, and the decline in trade volume across exchanges.
In the case of Bitcoin, which has a market share of less than 45 percent, the surge is mostly centered on altcoins such as Ethereum, DeFi tokens, and NFT marketplace initiatives. Bitcoin’s selling pressure is being resisted by whale wallets and huge HODLers. Addresses with 100 to 10000 Bitcoins have gathered around 30000 additional Bitcoin in the last week, and this accumulation is partly responsible for the price rising beyond $36000. Despite the fact that ETH exchange volume exceeds that of BTC, the flippening is unlikely to occur very soon, given Bitcoin’s positive narrative.