Analyzing the Flippening: When Will Ethereum Overtake BTC?

‘The Flippening’, termed in 2017, refers to the possibility of Ethereum’s market capitalization overtaking Bitcoin’s market capitalization. Bitcoin (BTC) has a market cap of $707 Billion, while Ethereum has a $270 Billion market capitalization. The flippening is a hypothetical moment where Ethereum will become the largest cryptocurrency by market capitalization.

First — the Absolute Basics: What is Market Cap?

Bitcoin vs. Ethereum

At present, according to blockchaincenter.net, the rate of Flippening in terms of Market Cap is 38.4%.

The Transaction Count and Volume Flippening are 100%. Trading volume (the adjusted exchange trading volume) for BTC and ETH is 70%. And the Total Transaction Fees Flippening is 100% as well.

The metrics mentioned above represent the following:

  • Transaction Count indicates the relation of total on-chain transactions that happen on the network. It signals that Ethereum has flipped Bitcoin by 100%.
  • Transaction Volume indicates the total amount of U.S. Dollars sent over the network. This metric exclusively compares ETH transfers with BTC. Both tokens and stablecoins transfers in Ethereum overtake Bitcoin by 100%.
  • Total Transaction fees represent the total value of fees paid in USD to conduct a transaction on the network. Again, this metric also implies the Flippening where Ethereum had pushed over Bitcoin.

While Bitcoin rightly deserves to be on the top, Ethereum can lead the next stage of blockchain implementation. Ethereum blockchain has a solid foundation for decentralized finance (DeFi) and non-fungible tokens (NFT).

The Big Signs

Goldman Sachs’ adoption

Mark Cuban’s views

He recently invested in an Indian Ethereum platform, Polygon, to prove his belief in Ethereum. Polygon runs on Ethereum based blockchain technology which specializes in decentralized finance apps.

What’s next?

The Ethereum network is also going to shift algorithms. The new algorithm proof-of-stake won’t reward ether tokens for maintaining the network to their users like before but will instead optimize the settlement of transactions where ethereum users can deposit tokens to secure the network and earn rewards. The proof-of-stake algorithm allows significantly higher multiples of transactions per second, which will improve the utilization and opportunities to create on Ethereum. Also, NFTs are popular and primarily utilize the Ethereum network itself.

Bitcoin, on the other hand, has gone through some changes and fixes in the last. The pseudo-anonymous nature of Bitcoin lets anyone make changes to Bitcoin’s code. However, to implement the changes, network consensus is required of 1000+ people and changes. As a result, the Bitcoin software is still developing and considered to be a beta. Like all technologies, if Bitcoin is not maintained and updated, it will fade and let another better cryptocurrency take its place.

Will the Flippening happen?

However, for the first time, an open competition can be seen to determine which protocol and cryptocurrency will reign supreme. Only time will tell whether the Flippening phenomenon will become a reality. Regardless of the competition, the breadth of creativity and innovation is worth celebrating.

A blockchain enthusiast and entrepreneur’s musings on the next big revolution since the Internet.