Should investors get their hopes up that Ethereum will flip Bitcoin?

Published 9:53 am Thursday, March 7, 2024

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Every crypto enthusiast knows that Bitcoin and Ethereum have been battling for years for the leading position in the sector. Bitcoin has held the title of the largest cryptocurrency by market capitalization over the last few years, and while Ethereum has gained ground, it never reached its level. With all its advances and improvements, it got stuck in the 2nd position in terms of market cap. 

However, crypto experts know that the industry is highly competitive and volatile, and everything can happen. So, they hope that the prediction that Ethereum will flip the Bitcoin price will become true sooner rather than later. It’s a narrative that served as motivation to many to invest in Ethereum. And while many Ethereum predictions turned true, this one seems to take quite long. 

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Ethereum’s developers have focused their efforts on upgrading the network and infusing it with more utility, so ETH has been registering faster rates of adoption and increased developer activity, so many investors have been tempted to think that the Flippening is around the corner. 

 Suppose you want to figure out if the event will ever happen; you might want to read this article because it provides some information that’ll help you decide for yourself if the narrative is plausible. 

Man holds different crypto coins in his hands on white

Image source: freepik

What is market capitalization?

You have heard the term market capitalization mentioned in association with the Flippening and might have the misconception that it’s the same thing as in the stocks sector. Well, it’s calculated differently because in the crypto sector is the total value of the coins created. It’s easy to determine it; you only multiply the number of coins available in circulation by the present price of a single unit. Market capitalization helps investors grasp the true size of an asset and evaluate its importance compared to the others. The market capitalization is one of the most important factors to consider when investing in an asset because it directly points to an asset’s stability and volatility. 

Beginner investors often make the mistake of thinking that they can measure a cryptocurrency’s value solely according to its price. But, seasoned investors use market capitalization to get the full picture and establish the asset’s position in the market. It’s a key factor to consider because it’s closely connected to its growth. Price could trick a beginner investor into believing that an asset like Bitcoin is too expensive to purchase and turn their attention to a cheap altcoin. But how can one compare apples to oranges? 

Why do crypto experts think Ethereum will flip Bitcoin?

Ethereum has facilitated the appearance of Web3, decentralized finance, decentralized apps, and non-fungible tokens, which have attracted an extensive number of investors. Nowadays, when crypto investors are looking for ways to diversify their portfolios, they turn to projects powered by the Ethereum network because they have the potential to make a high return on investment. Considering the fast advancement of the sector, it’s understandable that many think the market will reach enormous sizes, and they’re tempted to invest. Most developments in these sectors are happening on Ethereum, so its market cap will slowly rise. 

Ethereum flipped Bitcoin in some ways

Trends show that crypto users prefer Ethereum more than Bitcoin because it’s the backbone of advanced technology like non-fungible tokens, decentralized finance, and other similar advancements. Ethereum has made a name for itself in the sector because it provides the ideal framework for Metaverse and building Web3 projects. At present, it fuels Web3, decentralized finance, blockchain gaming, the Metaverse, and non-fungible tokens. As these industries evolve, Ethereum will stand apart even more from its competitors. 

What should investors expect?

It’s challenging to predict if and when Ethereum will flip Bitcoin, suppose it’ll ever do it. Even if Bitcoin has fewer utility cases, it has constantly upgraded its features to keep up with the latest requirements of the sector. Ethereum’s best chance to outgrow Bitcoin is to enter the mainstream and companies from all industries to integrate it in their payment methods. It’s definitely a journey that is worth the public’s attention, and everyone interested in making a profit from digital currencies and blockchain technology should keep an eye on it.