Ethereum and Bitcoin the two major cryptocurrencies have battled it out for the first and second position in the market cap rankings for a long time.
Now, with new bullish narratives emerging for Ethereum, many are speculating whether Ethereum can finally flip Bitcoin in market cap and take the number one spot.
Also known as ‘The Flippening’, Ethereum surpassing Bitcoin’s market cap would be a monumental turning point in the cryptocurrency industry.
Will Ethereum Flip Bitcoin This Year?
The flippening, or the expulsion of Bitcoin (BTC) as the top crypto asset by Ethereum (ETH), according to the presenter of crypto channel Coin Bureau, is an event that might happen this year.
Guy, a pseudonymous expert, reveals to his 1.91 million YouTube subscribers the two criteria that will determine whether the flipping will happen in the coming months in a new video.
When it comes to when ETH will become BTC, it’s feasible that it may happen sooner rather than later.
This is mostly determined by the two variables.
- The approval of a spot Bitcoin ETF (exchange-traded fund)
- The transition of Ethereum from proof-of-work to proof-of-stake.
Both of these events could take place in the same month. The few pending spot Bitcoin ETF applications could be granted by March, and the Ethereum-Bitcoin merger isn’t long after. Even if the merger is a huge success, if a spot Bitcoin ETF is permitted, it will be difficult for ETH to catch up to BTC.
If the merger takes place before a spot Bitcoin ETF is allowed, Ethereum may be able to briefly flip Bitcoin. The only exception is that if the Federal Reserve continues to raise interest rates, we could experience a bear market… If the bear market is in full stride by the time The Merge arrives. Ethereum will most likely be unable to flip Bitcoin due to a lack of market momentum.
In contrast, it’s difficult to imagine a down market in which a spot Bitcoin ETF is approved, implying that ETH is unlikely to flip BTC in the near term.
The two cryptocurrencies, Bitcoin and Ethereum, are fundamentally different. Bitcoin (BTC) is digital gold, while Ethereum (ETH) is digital oil. It wouldn’t matter if the market cap of crude oil flipped the market cap of physical gold or vice versa; why should it matter when the oil and gold in question are digital? Both cryptocurrencies, in my opinion, face unique growth hurdles, but both will eventually succeed in their respective niches.
Source: https://coinpedia.org/news/ethereum-eth-flipping-bitcoin-btc-in-the-year-2022/