Ethereum (ETH) has had tough days – and even beats Bitcoin’s performance. How likely is flippening?
Payday in Ether Land. The second largest cryptocurrency by market capitalization is heading for a bull run and is trading above $ 3,500 for the first time since May of this year.
Usually Bitcoin is what drives the market, but this Wednesday September 1st is different. Because while ETH is up 8.6 percent on a daily basis, BTC growth is stagnating. At USD 47,364, the value of the No. 1 cryptocurrency is growing only marginally: Compared to the previous trading day, digital gold is only 0.2 percent up.
There can only be one
The divergence between the two largest crypto assets is logically reflected in the market dominance of Bitcoin. It is true that this has been reversed for some time. At 42 percent, however, it is currently as low as it was last in June 2018. Of course, this also fuels expectations of a possible so-called “flipping”, i.e. the replacement of bitcoins as the most valuable crypto asset measured on the basis of market capitalization.
You really get the feeling that 2021 is the year for Ether. Its time has come. Ethereum is outperforming Bitcoin and it is expected that this trend will continue in 2021,
comments about Nigel Green, CEO of the deVere Group. The analyst expects ETH to overtake BTC by 2026.
But not so quickly, say others. Short-term rallies are not enough for flippening, what it takes is a long-term trend reversal. Market observers doubt that this will happen: however, such as Molly Jane Zuckerman, Content Lead at CoinMarketCap. Opposite to Cointelegraph says the analyst:
If you look at CoinMarketCap over the past five years, Ethereum is usually in second place, right behind Bitcoin. History shows us that there is only one cryptocurrency that can claim the title of “King of the Crypto World”.
Ethereum: Proof of Stake not without risks
Whether the upcoming changeover from Ethereum to Proof of Stake (PoS) will take place under bullish or bearish signs can hardly be reliably assessed at the moment. The fact is that a change in the consensus mechanism, i.e. the heart of decentralized cryptocurrencies, cannot be carried out without risks. Added to this are the various attacks on DeFi protocols, which should not exactly create confidence among ETH investors. Eswar Prasad, Cornell University professor of economics and author of The future of money, similar:
There could be technical complications in moving from Ethereum to the PoS consensus protocol and there are many risks of attacks on DeFi products that could undermine trust in those products and in Ethereum itself.
In the medium term, however, Ether could be the faster horse in the stable. This is also supported by on-chain data such as falling liquidity on the exchanges with increasing demand for ETH.
Furthermore, according to analyst Ki Young Ju, ETH is only around 23 percent away from the all-time high of 4,356 USD – with BTC it is 36 percent. It remains exciting.