It’s well known that Ethereum has already surpassed Bitcoin in the number of transactions. Nevertheless, Bitcoin is way ahead in a number of nodes and Google search interest. The exciting battle is taking place in trading volume and number of active addresses, and the “Flippening” is still going on.
In the crypto world, the term “flipping” or “flippening” refers to the historical time when Ethereum overtakes Bitcoin in terms of market capitalization. To date, Ethereum has overcome just 47% of the path to flippening (its capitalization is 47% of the Bitcoin capitalization).
The closest Ethereum got to flippening Bitcoin was June 17, 2017. Bitcoin was just $8 billion larger than Ethereum. The primary driver behind Ethereum’s success was a vast majority of demand for smart contracts.
If you look at where Bitcoin’s market cap was six years ago, approximately $5 billion, while Ethereum at a similar point has a $300 billion market cap in terms of its life cycle six years after launch.
Crypto trends: DeFi, NFTs and upcoming ETH 2.0
Most crypto analysts believe that the blockchain project of Vitalik Buterin will be in great demand. Nevertheless, the Ethereum network supports the active use of smart contracts, which allows it to be used for emerging DeFi (Decentralized Finance) projects and trending NFT (The Non Fungible Tokens).
Ethereum is rapidly gaining ground as the undisputed leader of DeFi. The next revolution in the cryptocurrency market, DeFi recently surpassed the $86.6B mark and is heading towards breaking new highs.
With the growing interest in DeFi and major developments in that field happening on the Ethereum blockchain, the price of Ethereum tokens can go very high, especially when decentralized finance begins to compete with current financial services.
Considering the high likelihood that this market is going to transfer on the blockchain, we can imagine a future where Ethereum forms the main cornerstone of NFTs.
In such a scenario, NFTs are also likely to have a significant impact on the price of ETH along with DeFi. The demand for Ethereum would rise significantly, because the value of these assets, in a way, would be backed by ETH tokens.
Ethereum has infinitely more potential and use cases than Bitcoin, but, is that a compelling argument? However, the king of crypto currently can’t compete with all of Ethereum use cases and incredible developments taking place in its landscape.
With the move to Ethereum 2.0 and Proof-of-Stake, Ethereum could potentially be more secure than Bitcoin and conduct up to 10,000 transactions per second.
The emission of tokens in Ethereum 2.0 will actually change so that it will not only be less inflationary than Bitcoin but also deflationary. it means that every year there will actually be fewer tokens in circulation because they will be burned.
Every crypto investor is waiting for this phenomenal event to grow their investment portfolio with ETH worth over $10,000 per token after the launch of Ethereum 2.0. The most rational would be to buy tokens on a free budget, deposit into a saving account and wait for the new blockchain revolution.
Can Ethereum overtake Bitcoin?
Bitcoin’s current market capitalization is close to $1 trillion, while Ethereum, on the other hand, is only around $450 billion. However, its use cases and adoption potential are growing, with DeFi and NFTs leading the pack.
As we know, in the rapidly changing world of decentralized assets, anything is possible, especially since the Ethereum network is awaiting a number of important updates that will allow it to become more popular in daily use.
Especially as Ethereum is moving to the next iteration – Ethereum 2.0 will certainly ensure better security, processing times, fewer fees, and more efficient resource usage.
– DeFi & NFTs growth and product launches
– Ethereum 2.0 testnets and the imminent launch
– Real privacy solutions and numerous use cases on mainnet
Ethereum is fast improving its programming potential, moving towards a new major upgrade, cementing its position in both DeFi and NFTs, and gathering institutional interest. However, Ethereum does not have to pass Bitcoin to be successful.