Bitcoin dominance in the basement: flippening on the horizon?

While Bitcoin continues to wait for impulses, the Altcoins are taking over more and more shares in the crypto market. The old season raises an old debate: Will Ethereum gradually take over the throne?

The crypto market brings the turbulent month to a conciliatory end. The total market capitalization is stabilizing above the 2 trillion mark, while the top coins are sticking to the growth trend of the last few days. Only one person can be asked something: Bitcoin. The crypto reserve currency has fought its way back from the weekend hole into its comfort zone, but since then the No. 1 has been moving sideways. Also in the last 24 hours: At 54,376 US dollars, Bitcoin is exactly at the level of the previous day.

The situation looks better for altcoins. Ethereum remains intoxicated with a plus of 2.5 percent and at USD 2,770 is only USD 27 away from the record high set yesterday. The distance to the (still) all-time high is also shortening for Binance Coin (BNB). The exchange token rose 7.9 percent to $ 605. Only $ 5 short of the record high.

Today’s front runner of the ten largest cryptocurrencies is XRP. The ripple currency rose by 10.5 percent just above the 1.50 USD mark and thus recorded a weekly plus of almost 30 percent. Polkadot (DOT) also made up for partial losses of the last few weeks with a price increase of 8.1 percent, but still posted a minus of 16 percent in the 2-week trend. Cardano (ADA) and Litecoin (LTC) are each making up between two and three percent at the time of going to press, while Dogecoin (DOGE) and Uniswap (UNI) are sliding down in the same area.

Bitcoin dominance in free fall

The altcoin market is thus decoupling more and more from the crypto draft horse Bitcoin. Bitcoin dominance, i.e. the percentage of Bitcoin capitalization in total market capitalization, is 49 percent, its lowest level since July 2018.

After months spoiled by rallies, Bitcoin is currently a bit out of breath. While being loud Glass node Once again a Hodl trend is emerging among BTC investors, the liquidity on the market is currently largely accumulating in the Altcoins. Although Bitcoin Bull Run and Altseason cyclically give each other the handle, the trend is stimulating the flippening debate again.

Is the flippening coming?

The so-called flippening means the throne of the largest cryptocurrency by the number 2. When looking at the current odometer reading, Bitcoin is still miles ahead of Ethereum. In the 90-day trend, Ethereum recorded a growth in market capitalization of 108 percent, while Bitcoin “only” brought it to 61 percent.

The “Ethereum value” is still only a third of Bitcoin, but at the network level, Ethereum has already left the front man behind in parts. When it comes to on-chain transactions, Ethereum Blockchain center according to already ahead. The number of active addresses and the trading volume also achieve over 70 percent on the Flippening scale. In terms of the number of nodes and search behavior on Google, Bitcoin is still clearly ahead.

In an interview with CNBC Kevin O’Leary, Chairman of O’Shares ETFs, took up the Flippening debate. O’Leary reassured, according to the investor, there is no sign of a turnaround. He believes that Bitcoin will be “always the gold” and Ethereum “always the silver” in the crypto market. However, this is “not necessarily a bad thing”. After all, both cryptocurrencies have their specific strengths. While Bitcoin has more of a value storage function, Ether acts primarily as a means of payment, even if the characteristics cannot always be separated from one another and the architecture of the Ethereum Blockchain has created an independent ecosystem. The fact that Ethereum is increasingly coming into the focus of institutional investors does not hide the fact that Bitcoin remains the most sought-after and scarce commodity on the crypto market. As soon as the old season storm subsides due to profit-taking, the dominance could quickly tip back in favor of Bitcoin.