Tracking Ethereum’s progress over the years


The event – termed as ‘The Flippening’ – is widely anticipated by ETH fans.

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The Bitcoin (BTC) network, the number 1 crypto asset since its inception, has primarily serves as a store of value. Whereas the Ethereum (ETH) network, being a generalized blockchain with a multipurpose toolkit for developers to build and deploy their applications, holds great value in the web3 and decentralized future. Today, Ethereum’s market cap is little over 43% as that of Bitcoin’s. We discuss how this may change in future and look forward to what ETH fans call ‘The Flippening’.

ETH/BTC is on the rise

We discussed ETH’s short-term performance against BTC in this post last week. Ethereum’s developer team has released a roadmap to the Merge which can happen as early as August this year. The Merge will make Ethereum a proof-of-stake (PoS) blockchain and improve its scalability.

Given the above, many analysts speculate that Ethereum will flip/overtake Bitcoin in terms of market cap in the future. Flippening is a term used to refer to a hypothetical moment when Ethereum (ETH) will overtake Bitcoin (BTC) as the largest cryptocurrency by market capitalization.

In the graph below, at 100%, ETH and BTC will both have the same market cap. At present, the flippening percentage (in market cap) stands at 43%. 

ETH market cap as a % of BTC market cap | Source: Blockchain Center

As we can read from the above, ETH hit more than 75% of BTC’s market cap in 2017 before losing stream. It has been on a general uptrend in the last one year and hit its highest in four years in Jan 2022. In the next bull market (likely 2023-2024), ETH/BTC should hit highs of 0.1-0.15 from the current 0.07. For flippening to happen on market cap, ETH/BTC should achieve a value of 0.177 or more. There is a strong chance of this happening over the next 4-5 years if ETH sustains its momentum. At this point, ETH will also be decoupled from BTC’s movements and become another standard for other crypto assets (altcoins) to follow.

Other Metrices

Besides market cap, several other metrics share the story of how ETH is gaining in on BTC in terms of adoption and useability. Some are:

  • ● The number of unique active addresses that send or receive transactions in a given week
  • ● The total transaction count of on-chain transactions that happen on a network (ETH is already leading this)
  • ● The transaction volume in USD that gets sent over the network
  • ● The adjusted exchange trading volume 

At present, the statistics for these metrics stand as follows:

Key Ethereum stats as compared to Bitcoin | Source: Blockchain Center

How can investors approach the above information?

The best way to navigate the market is to be ready for all types of eventualities. If ETH indeed flips BTC, its value must more than double against BTC from current levels. For the long term, this makes ETH a more attractive investment compared to BTC. However, for the next 3-4 months, Bitcoin will continue to dominate the market and it remains prudent to invest all new monies in Bitcoin during this period. Investors can then convert some BTC to ETH to keep their portfolio growing for the long term.

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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

 





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