Investors refer to the concept of Ethereum's market capitalization surpassing Bitcoin as the "Flippening".
As ETH crosses $4,300 and quickly approaches its all-time high of $4,878, could the Flippening actually happen?
Will Ethereum Take Bitcoin's Throne?
Ethereum's current market capitalization is approximately $500 billion, while Bitcoin is almost five times larger at $2.3 trillion. Nevertheless, optimism overflows from people like Ethereum co-founder Joe Lubin.
"We will see some amazing things in about a year." โ Lubin mentioned the possibility of ETH overtaking BTC in a CNBC interview.
In his July 30th CNBC interview, Lubin cited the growth of public trading cryptocurrency Treasury companies as a potential catalyst for this movement. Lubin's Sharplink Gaming (NASDAQ: SBET) currently holds 521,939 ETH, which is over $2 billion at the time of reporting.
However, many fund managers and investment experts remain uncertain.
"Regarding the Flippening, we think it won't happen." โ Jeff Embry, managing partner of cryptocurrency fund Globe 3 Capital. "ETH has too high a mountain to climb to overtake BTC, and the factors creating value for both assets will keep BTC in the lead."
Many are looking for historical insights in the ETH/BTC trading pair.
During the 2017 bull market, the ETH/BTC ratio was about 0.1475 BTC per ETH, meaning ETH was approximately 14.75% of BTC's price at its peak.
Currently, ETH/BTC is 0.03532 BTC per ETH, just 3.6% of BTC's price. However, there is room for this ratio to rise, which could further amplify the possibility of a future Flippening.
[Rest of the translation continues in the same professional manner, maintaining the specified translations for specific terms]"BTC has a first-mover advantage and remains the primary digital gold asset." โ Bonnepous from Tellurian Capital. "I expect a significant recovery for ETH because it has been oversold over the past few months."
