The Flippening: Why Market Pundits Say Ethereum Is Set To Become The No. 1 Cryptocurrency
Dubbed the “Flippening” by cryptocurrency fans, the scenario in which ether inevitably overtakes bitcoin and becomes the number one cryptocurrency has been setting the community abuzz, as it seems it’s only a matter of time before the pioneer crypto becomes number two.
The discussion around bitcoin losing its status as the most valuable cryptocurrency to ethereum has intensified in recent weeks due to the blockchain’s expected transition to proof of stake (PoS) by the third week of September.
The Flippening Is Nigh
After increased activity and a good performance from ETH over the past two weeks, partisans are calling for a flippening yet again.
The cryptocurrency that powers the ethereum blockchain looks poised to become the world’s largest by market capitalization, making ethereum the most valuable public blockchain. While ether currently boasts less than half the capitalization of bitcoin, that trend appears to be a real possibility.
In a recent note to clients, the founder and CEO of Quantum Economics, Mati Greenspan, stated: “I keep hearing people repeating the question, ‘wen flippening?’ Even though there’s no guarantee this will ever happen, just looking at the numbers, it does seem like this event is getting closer by the day.”
Ethereum has recently witnessed an influx of investors seeking to take part in decentralized applications, smart contracts, DeFi, and non-fungible tokens. This has led to many crypto observers concluding that ethereum is superior to bitcoin.
Now, ethereum is readying to move to a more scalable and environmentally friendly protocol than proof-of-work (PoW). The transition will make ETH a deflationary asset and bring down the energy consumption by around 95%, potentially giving it an upper hand over bitcoin.
Institutional Interest In Ethereum Is Surging
Notably, ether remains alluring for big-money players. Crypto trading firm QCP recently indicated that it had traded a massive amount of ETH options over the past couple of days, with hedge funds being the biggest buyers. The firm emphasized its belief that this high demand will continue as the Merge event draws closer.
Arca analyst Bodhi Pinkner noted in an interview with Bloomberg that it’s “very possible” for ethereum to take bitcoin’s valuation crown, adding that the current macro backdrop could be a significant boon for ETH.
“The flippening “is very possible”. “We have a favorable view of Ethereum. So that changing dynamic bodes theoretically well for Ethereum’s price relative to Bitcoin, especially in an environment of tightening.”
Suppose ethereum manages to surpass bitcoin and reign supreme for a long time. In that case, this only means the impact its smart contracts (and its other nascent use cases) can have is increasing, and that blockchain technology is successfully transforming the world.
Source: Read Full Article