Turns out, “The Merge” has been a big buy the rumor, sell the news event thus far. Of course, there is some macro to blame here as well with hotter than expected CPI prints last week. While the price of the token doesn’t show it, the merge was a big success in a lot of ways. What you are seeing is that ethereum has had https://bigbostrade.com/ the beta; it can go up more and drop more, too. Buy Bitcoin Worldwide receives compensation with respect to its referrals for out-bound crypto exchanges and crypto wallet websites. Bitcoin’s functionality is considerably more linear and simplistic when compared to the technological innovations offered by Ethereum.

The flippening will be the day Ethereum (ETH) finally becomes #1 coin. Meanwhile the “Merge” did not solve the overly expensive transaction problem of Ethereum and at some point in the near future the pretenders like Polygon and Avalanche will start eating Ethereum’s lunch. A large mining reward means there is more incentive for miners to invest in machines and secure the network. However, now that ETH does not have ASIC miners but only stakers, its reward is much lower and will likely stay much lower.

  1. In late January and early February, the BTC/ETH $100 minimum address ratio was down to 2.3.
  2. Before making financial investment decisions, do consult your financial advisor.
  3. Frankly, I think it is possible it can happen, though I don’t think we’ll see it for several years.
  4. One could argue there was an air of disdain between most pro-bitcoiners and those whose see the merit of alternative cryptocurrencies.

Now, I don’t usually do a lot of crypto advice here because, honestly, I think everyone is still figuring it out, and I’m not trying to build a cutting edge crypto reputation or anything like that. However, I cannot resist a good acronym or term, and the Flippening is just too good to pass up. Get early market exposure to all crypto market segments, from Metaverse to DeFi with our cross-chain ecosystem. In uniswap, liquidity providers provide liquidity and earn fees by depositing tokens which are then used by traders to facilitate exchanges from one token to another. Aave is an open source and non-custodial liquidity protocol for earning interest on deposits and borrowing assets. Smart contracts are used to automate the agreement terms between the participants of the protocol thereby eliminating the need for trust, as well as intermediaries.

A gently rising supply in the next couple of decades could also keep Bitcoin’s total value rising and prevent a possible flippening. Flipping has made fortunes in real estate, but it does seem to spawn more infomercials than it does easily replicated results. Flipping in a hot market is the riskier of the two, as hot markets can cool unexpectedly. If market conditions change before the property can be sold, then the real estate investor is left holding a depreciating asset. Although Bitcoin is the market leader, its grip on the cryptocurrency market has been loosening over time, allowing the dominance of Ethereum to grow.

The Flippening: What Crypto Investors Should Know About ETH Overtaking BTC

This would essentially mean that our personal information as well as our financial data is stored on other people’s devices. Having data stored elsewhere can become problematic according to many. Decentralization is essential to avoid storing sensitive and important information elsewhere. Doing so would mean that users have less of a direct control and it also opens many doors for censorship.

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One could argue there was an air of disdain between most pro-bitcoiners and those whose see the merit of alternative cryptocurrencies. Multiple years of friction have caused a paradigm shift in the cryptocurrency world, an effect known as the flippening. To be more specific, it is evident most altcoin traders no longer base individual coins’ value on the bitcoin price. That being said, things are changing in the world of bitcoin and cryptocurrency. Bitcoin “maximalists” have held onto their BTC supply in the hopes of everything turning out to be alright.

What is the Flippening?

While it’s difficult to predict precisely when or if the Flippening will occur, it’s clear that both ETH and BTC have strong support and could potentially continue to jockey for the top spot. Ultimately, the outcome of the Flippening will depend on various factors, forex spread meaning including the price of each cryptocurrency, adoption trends, and investor sentiment. Regardless of the outcome, investors and cryptocurrency enthusiasts must keep an eye on the Flippening and stay informed about the latest developments in the market.

It refers to the hypothetical moment when Ethereum (ETH) overtakes Bitcoin (BTC) as the largest cryptocurrency by market capitalization. While market cap is the primary metric used to determine the Flippening, it’s not the only one. Ethereum has flipped Bitcoin if metrics like transaction count are considered. It also briefly outperformed Bitcoin in transaction volume during the 2021 bull market. Generally, Bitcoin still dominates the market in terms of trading volume, Google search keywords, market capitalization, and active addresses. Another factor that could contribute to this phenomenon is the cryptocurrency’s utility.

This shows a user-generated network effect that can’t be ignored and is largely explainable be the amount of additional layers and applications that have been built on Ethereum. After all, ETH is still the gas that is required for the transactions that those in the ecosystem are executing. Year to date, we’ve seen non-zero balance addresses grow 16.9% for ETH but just 9.5% for BTC. Looking out longer term though, the growth since the 2017 bull cycle top is staggering. Ethereum will continue to be the token with the beta (volatility) and if there is another leg down to the bottom of the crypto-winter it will lose more than bitcoin. When the bounce comes it will outperform bitcoin but it will follow and still likely lag the market cap of bitcoin.

Join millions, easily discover and understand cryptocurrencies, price charts, top crypto exchanges & wallets in one place. Since then, even though its price per coin has risen drastically, Bitcoin’s market share has fallen compared to its share against the rest of the crypto market and now stands below 60%. At the same time, other cryptocurrencies, especially Ethereum, have rapidly gained market share.

Why exactly does it matter if one cryptocurrency overtakes another?

The Flippening is crucial because it would represent a significant shift in the cryptocurrency landscape. If ETH overtakes BTC as the largest cryptocurrency, it will signal a change in investor sentiment and adoption patterns. It could also indicate a shift in the overall direction of the cryptocurrency market. Ethereum is largely inspired by Bitcoin, and is currently the second most valuable cryptocurrency with a market capitalization over $216B. Although it is commonly referred to as Ethereum overtaking Bitcoin in market capitalization, there are several other metrics where the two blockchains can be compared.

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But they actually both perform very different functions, bitcoin as a store of value and ethereum as a technology platform, he added. “I didn’t think it was going to happen [in May 2021] and I still don’t think it’s going to happen now,” Alfred said. “There’s no way that ethereum’s price is going to appreciate enough to catch bitcoin.” Insider spoke with crypto experts to help break down the concept of “flippening”. They shared their predictions on when it might happen and the market implications of the event. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.