The digital currency industry is so popular because Bitcoin is so popular that it is hard to believe that this digital currency will ever return to second place. Since Bitcoin’s official launch in 2009, no other cryptocurrency has surpassed it in terms of market capitalization. Simply put, Flippening is a phenomenon where Ethereum has overtaken Bitcoin in terms of market capitalization to become the number one currency in the world. Will this event happen? How likely is that to happen? If you want to know the answers to these questions about Flippening digital currency, don’t miss this article.
What is Flippening?
Flippening is a prediction made by Ethereum maximalists, which means that in the future, Ethereum will overtake Bitcoin in terms of total market capitalization. Since its launch in 2009, Bitcoin has maintained its market value and is the world’s leading digital currency. Bitcoin’s dominance is over 99% by 2015 and no other currency can compete with it. Nevertheless, the value of this digital currency has increased over the years; But its capacity has dropped significantly and at the time of writing it is at 43.92%.
The term flipping was introduced in June 2017; Since there is nothing left, Ethereum is higher than Bitcoin in terms of market value. At that time, Ethereum’s dominance was 31% and Bitcoin occupied 38% of the market. During 2017, the flexibility of Ethereum was highlighted by providing a platform for building applications based on smart contracts. This led to an influx of liquidity into the Ethereum market; Therefore, which caused a significant increase in its price.
By mid-2022, Bitcoin’s market cap was $575 billion, more than double Ethereum’s $220 billion. So far this amount has reached 400 billion dollars and 180 billion dollars respectively.
What is the Flippening indicator?
After we have introduced you to the concept of flippening, it is time to know what the flippening indicator is and how to find it. The analysis and assessment made in the digital currency market are generally based on several indicators. The Flippening indicator is another tool for analysts to assess the future of the market. In fact, this indicator shows the probability of winning the position and ranking of Bitcoin through the cryptocurrency Ethereum. Additionally, factors such as transaction volume, transaction addresses, total supply and demand, the total value of the desired digital currency, etc. This will affect the final result of the indicator.
What is the use of the Flippening indicator?
The fact that another digital currency can replace Bitcoin is a very important issue in the cryptocurrency world. For this reason, cryptocurrency market analysts and traders use the flipping indicator in many cases. The main purpose of this indicator is to continuously and real-time check the properties of Bitcoin and Ethereum. In addition, he is responsible for researching and analyzing all factors that influence the total value of these two currencies.
It should be said that this indicator can show the users of the world of digital currencies when and how the Ethereum digital currency will replace Bitcoin. In fact, after evaluating the overall market value of Ethereum and Bitcoin, this indicator determines the possibility of replacing Ethereum with Bitcoin.
What factors influence Ethereum overtaking Bitcoin?
1. Amount of capital available in the market
One factor influencing Ethereum to overtake Bitcoin that you should pay attention to is the amount of capital available in the cryptocurrency market. It is better to understand that the more capital in a digital currency, the higher the structure of that currency. Therefore, it is possible that after the introduction of Ethereum, the amount of capital in the Ethereum market will exceed Bitcoin and Ethereum will receive Bitcoin.
2. Amount and volume of transactions
Another factor influencing Ethereum to overtake Bitcoin is the volume and number of transactions for each digital currency. It is interesting to note that one of the criteria for ranking digital currencies is the volume of transactions for each coin. So if the number of transactions Ethereum earns Bitcoin, it can result in Ethereum earning Bitcoin.
3. User search status
Another factor affecting Ethereum to surpass Bitcoin is the search rate of users. Thus, the more searches are made for Ethereum digital currency, the more popular Ethereum becomes and it becomes more popular than Bitcoin and may even surpass Bitcoin.
What will happen to Bitcoin after flippening?
The flippening in the digital currency market could affect not only Bitcoin but also altcoins. We do not yet know how the flippening will affect the cryptocurrency industry. But it can be predicted that if Ethereum overtakes Bitcoin, altcoins and other digital currencies may not be so dependent on Bitcoin, and its value will decrease or increase. As a result, they may experience weaker price movements in the market. Contrary to popular belief, flippening is not a doomsday scenario for Bitcoin and the value of the digital currency king will not drop to zero. Instead, the most likely scenario is that despite losing its spot at the top of the table, the digital currency king will still be a significant asset in the industry landscape.
We must say that the reason for this is Bitcoin’s unique security and decentralization. With thousands of nodes around the world, Bitcoin is the most secure payment network, and Ethereum surpassing its market cap won’t change that fact. Meanwhile, some say that Bitcoin is money and Ethereum is a platform. Therefore, it is probably wrong to compare them. Because we want to equate gold with the Internet. The goals of these two digital currencies are completely different. For this reason, Bitcoin will likely remain a store of value and retain its title as digital gold.
âś…Conclusion
Flippening or overtaking of the market cap of Ethereum is certain and likely to happen because Bitcoin is not only not generating value, it is gradually losing its value. Flippening works well in the cryptocurrency market. Because placing a loss-making asset and falling from the position of a leader in this industry makes the situation unstable and sluggish. Bitcoin is destined to go through Flippening and eventually become a respected and loved asset.
There is no guarantee that the Flippenin event will result in a change in the value of Ethereum relative to Bitcoin. The mysterious world of crypto is so unpredictable that Tether or Ripple or any other digital currency can replace Bitcoin at the top of the table. But statistics and analysis show that the battle between Bitcoin and Ethereum for the position of the most popular crypto will benefit Ethereum in the future.
FAQ
What is Flippening?
Flipping literally means turning and moving. In digital currencies, it is mainly used to increase the rank of digital currencies.
Is it possible to Flippening bitcoin?
Given Bitcoin's growth trend, which is slower than Ethereum's growth trend, some experts believe that this will happen in the coming years.
How much does Ethereum dominate the crypto market?
The highest number of this digital currency in 2017 is 25.32. However, now this figure has reached about 18.54 percent.
