The stars of fate are smiling upon Ethereum. The silver cryptocurrency has procured a new ATH of $3.541 in the last 36 hours. Some analysts are talking about a transitional overlap, while others prepare for an altcoin season. Some Ethereum cohorts are spreading news of an upcoming Flippening in the crypto markets.
The Flippening refers to a hypothetical phenomenon when Ethereum would overtake Bitcoin price. The current rise of Ethereum is not by sheer coincidence, but it has been a steady climb complemented by several positive developments on the blockchain. There is a huge hype around Defi markets and the NFT craze, for starters. While upgrades like EIP-1559 would burn excess tokens, they have started to make anticipatory effects. The presence of three unique ETH ETFs in Canada also aids the narrative.
The analogy presented by Eduardo Prospero, a crypto reporter, is pretty interesting. The article published in the Bitcoinist notes that while it is true that Bitcoin does not hoard as much utility as Ethereum, the fact remains that whether it is a matter of concern for the king coin or not. Prospero refers to the analogy that since the market cap of the Swiss army knife is not bigger than a screwdriver, the same can be said about Bitcoin.
The heavy inflow of institutional investors in Bitcoin is the largest on a global scale. In comparison, other cryptocurrencies do not come close to the flagship cryptocurrency. Furthermore, there has been a higher and more rapid rise in ETC evaluation than ETH despite its old-school blockchain approach. Nevertheless, while a fintech giant like VISA has decided to settle transactions in USDC, Europe Investment Bank’s digital bond, and ETH futures issued by CME group, the tailwinds of favor can sway in the direction of Ethereum.
The Historical Context for Crypto Market’s Flippening Theory
During the 2007-2008 bull rallies, the market analysts were also thinking about the same hypothetical phenomenon. However, looking at the records, it can be deduced that market sentiment for Bitcoin bears has not been very encouraging. Roger Ver, the founder of Bitcoin Cash, seems to think that Ethereum and Bitcoin Cash could experience a higher evaluation in the upcoming months.
Steven Nerayoff, the co-founder of Ethereum blockchain, points towards the lined-up upgrades for the blockchain in the current year. He believes that since there are billions poured into the blockchain from all directions, its price could double or triple by the end of 2021.