Once upon a time in crypto land, the word “Flippening” was swung around on a daily basis. The term colloquially stands for the much discussed possibility of Ethereum the market capitalization from Bitcoin “turn around” and thus to the largest cryptocurrency become the world. Yet there hasn’t been as much talk of a new King lately, as shown by the Google trending data below for the search term “flippening.”
In terms of price action, 1 ETH is now worth 0.06 BTC after trading close to 0.09 BTC before Christmas. As has become common in crypto markets, Bitcoin has held up better than its smaller counterparts as the entire market faltered in 2022. However, the magnitude of the Bitcoin-denominated decline in ETH is actually surprising and steeper than we had seen for most of the pandemic bull run.
However, this reflects Bitcoin’s strength rather than Ethereum’s weakness. In previous risk-averse periods, Bitcoin has cratered, taking the rest of the market down with it. In 2022 we see something different. With stock markets having their worst start to a year since 1939, Bitcoin is down just 16% year-to-date in USD terms.
This represents notable growth for the cryptocurrency and obvious progress toward its store of value goal. Of course, a 16% drop is still a terrible return and far from a store of value, but the improvement in historical terms is notable.
With Ethereum struggling so far in 2022 (like any financial asset), talk of flippening has therefore died down. The merge timeline, which was repeatedly pushed back, also contributes to this. Ethereum’s much-anticipated move to proof-of-stake is said to improve network scalability, alongside other network updates like sharding, and the biggest complaint about the Blockchain tackle – the onerous gas fees.
Any prediction for Ethereum will be largely tied to the outcome of this update, the biggest for the network since Vitalik Buterin created it. But with the merger now seemingly imminent — most market commentators expect it to happen later this summer — don’t be surprised to see Ethereum jump back to the top of crypto headlines.
If the merger goes smoothly, there will be no more obstacles or excuses – it will finally be time for Ethereum to do its thing and show if it really has the guts to head back Bitcoin to run.
With the huge difference in value right now – at the time of writing, Bitcoin is worth $742 billion while Ethereum is less than half that at $342 billion – the flippening is indeed not going to happen any time soon. But don’t be surprised if you keep coming across the term as the merger nears.
Source: Crypto News Deutsch