Crypto fans await the ‘Flippening,’ when Ether will surpass Bitcoin in value
The world’s largest cryptocurrency, Bitcoin, has long held the throne in the realm of digital assets. But now, as a result of Ether’s spectacular rise, supporters of the No. 2 cryptocurrency by market value are renewing predictions that it could eventually usurp the crown.
The “flippening,” as it is known in the cryptosphere, is still probably a ways off. Even after Ether increased by 50% over the past month, its market worth of over $210 billion is still less than half that of Bitcoin. However, as a significant milestone draws near, believers are encouraged by a renewed faith that it will happen—possibly sooner rather than later.
Mati Greenspan, the founder and CEO of Quantum Economics, used the crypto-slang of the market believers in a message. Even while there is no assurance that this will ever occur, based solely on the statistics, it appears like the event is approaching quickly.
Since programmer Vitalik Buterin’s blockchain for Ethereum was first imagined in 2014 and released a year later, supporters have hailed it as a superior version of Bitcoin. The white paper for Bitcoin, which was published in 2008, is attributed to Satoshi Nakamoto, the assumed pseudonymous person or group who created it.
As anticipation increases for its long-awaited software upgrade, which will enable a transition from the current system of utilizing miners to a more energy-efficient one using staked currencies, the price of ether has increased in recent weeks. After being pushed back several years, the transition to this ‘proof-of-stake’ system is anticipated to happen in September. In the upcoming weeks, a number of events will be held for prospective stakers and other community members. Ethereum developers have lately indicated significant progress in testing the new system.
Hedge funds have been significant buyers, according to QCP, a cryptocurrency trading company, which said that its desk has transacted “an amazing volume” of Ether call options in recent days. They stated in a markets update on Telegram that they “anticipate this demand to continue as we approach the integration in September.”
Since mid-June, Ethereum-related assets and Ether have both increased by about 50%. According to data gathered by Bloomberg, the value of Uniswap, a decentralized cryptocurrency exchange that trades mostly on Ethereum, has increased by roughly 70% in the last month. According to CoinMarketCap, Bitcoin’s market share has decreased from 70% in January of last year to somewhere around 40% at the moment.
The CEO of BitBull Capital, which runs cryptocurrency hedge funds, Joe DiPasquale, stated, “We do like Ether, and we think it’s a huge differentiation.” Ether is actually the other 100-pound gorilla; Bitcoin has traditionally been the one. His company owns Ether and has been purchasing since the cryptocurrency’s rise from $1,000 to $1,500. Everything else lags behind. Last week, DiPasquale added to his role.
According to Bodhi Pinkner, an analyst at cryptocurrency asset manager Arca, the flippening “is quite possible.” We have a positive opinion about Ethereum,” he added, adding that after the Merge, it will turn into a deflationary asset. Therefore, the shifting dynamic is potentially positive for Ethereum’s price in relation to Bitcoin, particularly in a tightening climate.
This is hardly a brand-new development, to be sure. Cryptocurrency enthusiasts have long searched for indications that Bitcoin’s dominance may be waning as other projects and tokens appear. The Merge has been in development for years, but there have been numerous delays. Most recently, June was projected as the date, however it was postponed once more.
According to Quantum’s Greenspan, “The Merge itself is a tremendously dangerous event and any number of things can go wrong.” “Bigger risk can lead to higher rewards, as is always the case in the markets. They don’t refer to it as risk because it is harmless and fluffy.
Wave Financial’s Henry Elder, who oversees decentralized finance, concurs.
From the perspective of the price of ETH, “The Merge is over-hyped,” he declared. “It’s a huge technological development for Ethereum, but 99.99% of users won’t notice anything different until months or years from now. In the meanwhile, it will take some time for the effects of cutting and reallocating issuance to affect ETH pricing.
He makes reference to the halving process for Bitcoin, a pre-programmed update that reduces miner incentives by half around every four years. According to him, it may take months for the effects of such an occurrence to be felt in the marketplace.
“I wouldn’t be surprised to see prices pump into the Merge, but I don’t think it’s a sustainable catalyst until the second half of 2023,” Elder said.