Since its inception, Bitcoin has become, and still is, the number one cryptocurrency on the market, even penetrating through to more traditional capital market exchanges. While many coins have since surfaced, the lion’s share of these currencies still includes using the Bitcoin blockchain, essentially tying themselves to the success and technological advancement of the Bitcoin market. Ethereum came in to change the game, notably stating that it is, and forever will be, a purely decentralized blockchain technology that serves to give every investor access to capital, away from the prying eyes of the established financial system.
There are many things that Ethereum has done right, like being the second largest cryptocurrency, but still hovers around 1/20th of the price of Bitcoin. Various projects have chosen to adopt the Ethereum blockchain instead of the Bitcoin one, but recent macroeconomic events have shown that crypto is not immune to overall market sentiment.
With all of this being said, cryptocurrency has begun making a comeback this week. So much so that some investors are asking: “when will the great flippening happen?”
Ethereum to Overtake Bitcoin?
Although a popular Twitter meme “wen flippening” has been around since ETH has made headwinds in the market, the meme could actually prove true. Many Bitcoin enthusiasts consistently do not take this saying into consideration, adamant that it is highly impossible that Bitcoin will ever be overturned in the near future. It is important to note that overall sentiment betrays that Bitcoin will not necessarily be the number one cryptocurrency forever, but that it still has a long time before it can be toppled from its reign.
To understand how ETH does this, it is best to look at the lead development team of the coin and overall blockchain technology. Ethereum has the most developers on hand, making it the fastest developing coin on the market. Bitcoin comes in third, behind the PolkaDot ecosystem. When looking at the fervent race for Web3.0 dominance, ETH is poised to take the number one spot at this point in time, keeping and retaining the most talent within its network and chain of development. Ethereum also has an extremely tight grip on the NFT market, which mostly trades in the coin and uses its blockchain technology for delivery, approvals, and gas fees.
On the flip side, BTC still remains one of the top transacted and accepted modes of crypto on the market – including staking, purchasing credit at casinos, and even through international transactions and trade.
Judging solely from the number of developers, it seems that ETH will take over BTC sooner rather than later, but further factors need to be considered, such as sentiment and open interest.
The Merge, The Flippening, Open Interest
Halving, the phenomenon known to all crypto miners as synthetic scarcity is the number one way coins themselves have increased in value over short periods of time. the ETH project finally confirmed that the long-awaited “Merge” will be happening during the early weeks of August, essentially paving the path forward for ETH 2.0. When this happens, the coin will be much more difficult to mine, and the price is set to jump in a way never seen before. It may not reach the price of Bitcoin yet, but it sure will be a lot closer to it.
Furthermore, open interest has surged among crypto bulls for derivative contracts on the popular exchange Deribit. As of August 1, 2022, Ether options are trending with 32% more interest than their BTC counterparts. Clearly, the flippening may happen a lot sooner than previously thought.
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