“Do you get used to flipping?” Crypto Fans Bet On Ether Outdoing Bitcoin

Bitcoin, the world’s largest cryptocurrency, has always reigned supreme in the land of digital assets. But now, thanks to a dazzling rise from Ether, fans of the No. 2 token are reviving market value predictions that it is destined to take the throne one day.

Bitcoin, the world’s largest cryptocurrency, has always reigned supreme in the land of digital assets. But now, thanks to a dazzling rise from Ether, fans of the No. 2 token are reviving market value predictions that it is destined to take the throne one day.

In crypto parlance, it’s known as the “flipping” – and it’s probably still a long way off, if it happens. Ether’s market value of approximately $210 billion is less than half that of Bitcoin, even after Ether has surged by 50% in the past month. And yet believers get a newfound optimism as a milestone approaches that they say will increase the odds — perhaps sooner rather than later.

“I keep hearing people repeat the question, ‘wen flippening?’” Quantum Economics founder and Chief Executive Officer Mati Greenspan wrote in a note, using the crypto jargon used by market stalwarts. “While there is no guarantee that this will ever happen, it seems that this event is getting closer by the day.

Ethereum boosters have touted the blockchain as a better version of Bitcoin almost since it was conceived in 2014 by programmer Vitalik Buterin and launched a year later. Bitcoin’s white paper was unveiled in 2008 and attributed to Satoshi Nakamoto, the name used by the supposedly pseudonymous person or group that developed it.

Ether has skyrocketed in recent weeks as optimism grows about the highly anticipated software upgrade, which will facilitate a move from the current system of using miners to a more energy-efficient system of wagered coins. The switch to this so-called proof-of-stake system is expected to take place in September after a number of years of overhaul. Ethereum developers have recently signaled progress in testing the new system, and they are holding a series of events for potential strikers and other community members in the coming weeks.

QCP, a crypto trading outlet, said its agency has been trading “an incredible amount” of Ether call options in recent days, adding that hedge funds have been big buyers. “We expect this demand to continue as we approach the merger in September,” they wrote in a market update on Telegram.

Ether is up about 50% since mid-June and Ethereum-related assets have also moved forward. Uniswap, a decentralized crypto exchange most popular on Ethereum, is up about 70% in the past month, data collected by Bloomberg shows. Meanwhile, Bitcoin’s dominance has declined to about 40% of the market, from 70% in January last year, according to CoinMarketCap.

“We love Ether and we think it’s an important differentiator,” said Joe DiPasquale, CEO of BitBull Capital, which manages cryptocurrency hedge funds. “Bitcoin used to be the hundred-pound gorilla, but Ether is really the other hundred-pound gorilla. Everything else is lagging behind.” His company owns and bought Ether as the coin made its climb from $1,000 to $1,500. DiPasquale added his position last week.

The flippening “is very possible,” said Bodhi Pinkner, an analyst at crypto asset manager Arca. “We have a favorable view of Ethereum,” he said, adding that, after the merger, it will become a deflationary asset. “So those changing dynamics theoretically bode well for the price of Ethereum versus Bitcoin, especially in an environment of tightening.”

This is of course not a new development. Crypto crowds have long searched for signs that Bitcoin’s dominance could wane as other projects and tokens emerge. And while the Merge has been in the works for years, it has been delayed many times over. The most recently was expected in June, but was postponed again.

“The Merge itself is an extremely risky event and anything can go wrong,” said Quantum’s Greenspan. “As always in the markets, higher risk can equate to higher return. And they don’t call it a risk because it’s lighthearted and safe.”

Henry Elder, chief of decentralized finance at Wave Financial, agrees.

“The merger is overhyped from an ETH price perspective,” he said. “It’s an incredibly important technology change for Ethereum, but 99.99% of users won’t experience a difference until months or years later. Meanwhile, it will take some time for the effects of reducing and reallocating issuances to ETH prices to seep through.”

He points to the Bitcoin halving process, a pre-programmed update that halves Bitcoin rewards for miners every four years or so. The impact of such an event could also take months to see in the market, he said.

“I wouldn’t be surprised if prices go up in the Merger, but I don’t think it’s a sustainable catalyst until the second half of 2023,” Elder said.

Leave a Comment