In the event of a merger, some observers are wondering if flipping could occur, which suggests Ethereum’s capitalization will ever exceed Bitcoin’s capitalization.
The long-awaited Ethereum blockchain transition called The Merge took place this Thursday. Since the date of this merger (scheduled for September 15th) has been known for a long time, the price of ether did not jump on day d.
Cryptocurrency even dropped in price for several hours as the SEC boss stated that cryptocurrencies using “proof of stake” can be issued as securities (for example, stocks). Despite the volatility of Ethereum, a well-known question in the crypto community pops up: can there be a “coup” thanks to The Merge?
The term flipping is unique to the crypto ecosystem. It appeared in 2017, when ether began to take its place in the cryptocurrency market, which until then was almost completely dominated by bitcoin.
Flipping is to think that one day the capitalization of ether will exceed the capitalization of bitcoin. There’s even a site that evaluates swiping capabilities in real time. Today, flipping would be 47%. In 2018, this percentage was 17%.
From there to go flipping thanks to The Merge? Some people disagree.
“Although bitcoin is a form of currency, ethereum is stuck between claims that it is a form of currency and claims that it is a decentralized application platform. but ethereum cannot compete with bitcoin on the data front to be a currency because it I don’t have a fixed supply. And it’s not yet a true world computer because it’s currently too slow to scale,” said Paolo Ardoino, CTO of Tether and Bitfinex at The Block.
“The only existing asset with a solid history”
“The real message here is not in what the merger will change, but in an asset that already exists and delivers on the core themes of our industry, including true decentralization. The fact is that bitcoin is the only asset that has a solid history that has not changed. Ethereum still doesn’t match Bitcoin because its history keeps changing,” he said.
Today, bitcoin remains the cryptocurrency with the largest market capitalization. At the time of writing, bitcoin has a capitalization of $378 billion, while Ethereum has remained below the $179 billion mark, according to Coinmarketcap.
Despite this observation, certain long-term trends suggest that Ethereum is gaining momentum. For example, Ethereum dominance — that is, the weight of this cryptocurrency in the overall cryptocurrency market — has increased from 14% in June to 20% this month, according to TradingView data. Conversely, over the same period, bitcoin dominance fell from 48% to 40%, faced with the emergence of other cryptocurrencies.