Bitcoin, the world’s largest cryptocurrency, has always reigned supreme in the field of digital assets. But now, thanks to Ether’s incredible rise, fans of the #2 token by market value are reviving predictions that it will one day take the throne.
Bitcointhe world’s largest electronic money, always reigns supreme in the land of digital assets. But now, thanks to Ether’s incredible rise, fans of the #2 token by market value are reviving predictions that it is destined to be. one enthronement day.
In crypto parlance, it’s called “flippening” – and it’s still possible, if it does. Ether’s roughly $210 billion market value, less than half the size of Bitcoin even after Ether up 50% in the past month. However, believers are invigorated with a renewed optimism as steps towards the milestone they say will increase the likelihood of it happening – perhaps sooner rather than later.
“I keep listening Everyone repeat the question, ‘wen flippening?’, Quantum Economics Founder and CEO Mati Greenspan wrote in a Note, which uses crypto slang used by market loyalists. “While there is no guarantee that this will happen, just looking at the numbers, it looks like the event is getting closer by the day.”
Ethereum Promoters Touted blockchain as a better version of Bitcoin almost since it was conceived by programmer Vitalik Buterin in 2014 and launched a year later. The Bitcoin white paper was published in 2008 and attributed to Satoshi Nakamoto, the name used by an individual or group believed to be nicknamed Who developed it.
Ether has surged in recent weeks as optimism grows over its long-anticipated software upgrade that will facilitate the transition from the current miner-based system to the existing one. more energy efficient system using stock money. The switch for this so-called proof-of-stake system is expected to take place in September after being launched for several years. Ethereum developers recently signaled continued progress in testing the new system, and they are hosting a series of events for potential creators and other community members in the coming weeks.
QCP, a cryptocurrency exchange, said its desk had traded “an amazing amount” of Ether call options in the past few days, adding that hedge funds have had a large following. buy big. “We expect this demand to continue as we move towards consolidation in September,” they wrote in a market update on Telegram.
Ether is up around 50% since mid-June, and Ethereum-related assets have also been on the rise. Uniswap, the most popular decentralized cryptocurrency exchange on Ethereum, has grown by about 70% in the past month, data compiled by Bloomberg recital. Meanwhile, Bitcoin dominance has dropped to around 40% of the market, down from 70% last January, according to CoinMarketCap.
“We like Ether and we think that’s a big differentiator,” said Joe DiPasquale, CEO of BitBull Capital, which manages crypto hedge funds. “Bitcoin is a hundred-pound gorilla, but Ether is really another hundred-pound gorilla. Everything else is left behind.” His company holds Ether and bought while the coin was growing from $1,000 to $1,500. DiPasquale was added to its position last week.
“Very likely,” said Bodhi Pinkner, an analyst at crypto asset management firm Arca. “We have a favorable view of Ethereum,” he said, adding that it will, after Consolidation, become a deflationary asset. “So dynamic code changes are theoretically great for the price of Ethereum versus Bitcoin, especially in a tight environment.”
To be sure, this is not a new development. The crypto crowd has long been looking for signs that Bitcoin dominance could decline as other projects and tokens emerge. And while work on Consolidation has been going on for years, it has been delayed several times. It was most recently scheduled to take place in June, but has been delayed again.
“Consolidation itself is an extremely risky event and anything can go wrong,” said Quantum’s Greenspan. “As always in the market, higher risk can equate to higher return. And they don’t call it risky because it’s soft and safe.”
Henry Elder, head of decentralized finance at Wave Financial, agrees.
“Consolidation is overblown from an ETH price perspective,” he said. “It’s a hugely important technological change for Ethereum, but 99.99% of users won’t make any difference until months or years later. Meanwhile, the effects of issuance reduction and reallocation will take some time to filter down to the ETH price.”
He points to Bitcoin’s halving process, which is a pre-programmed update that cuts Bitcoin rewards for miners every four years or so. The effects of such an event could also take months to be visible in the market, he said.
“I wouldn’t be surprised to see prices pump into consolidation, but I don’t think that’s a sustainable catalyst until the second half of 2023,” Elder said.