Now that The Merge is in full swing, is it possible Ethereum could potentially flip bitcoin and become the largest and most powerful digital currency in the crypto space?
Will Ethereum Overtake BTC?
Many analysts have been talking about what they refer to as the “flippening” for some time. The idea is that Ethereum will eventually become so strong it could ultimately outdo bitcoin, and what was once the world’s second largest digital currency by market cap will become king of the arena.
We’re not quite there yet, but several analysts think that Ethereum will eventually take over and be the number one spot holder. One such analyst that thinks this could happen is Gabriel Selby, a lead researcher at crypto index provider CF Benchmarks. In a recent discussion on Twitter, Selby said:
Investor interest in Ethereum has remained resilient as it nears The Merge, its once-in-a-lifetime event that will see the whole network migrate onto proof of stake. Some have suggested it could be the catalyst for Ethereum to overtake bitcoin as the world’s largest coin by market capitalization.
He continued with:
Since the start of the year, the market cap ratio between bitcoin and Ethereum has converged to its narrowest differential since May 2021. If the current trend persists, Ethereum could reach the top of the league tables by the end of 2023 or sooner… With the proliferation of financial products that have enabled a much broader range of investors to express their price views in the crypto markets – such as the recently-launched Ethereum options contract by CME – the mechanisms are very much in place for Ethereum’s market cap to overtake bitcoin, should there be buy-in from [enough] investors.
Martin Hiesboeck – head of blockchain and crypto research at digital currency trading platform Uphold – seems to agree with the idea that Ethereum could one day be the industry’s main player. He said:
We believe that Ethereum has great utility, and once the purge phase of pruning the code starts in 2023, it will be a very good blockchain with even greater adoption. The [Ethereum] price could well skyrocket.
Daniel Kostecki – a senior financial analyst at investment firm Conotoxia – also threw his two cents into the mix, commenting:
Ethereum has already surpassed bitcoin in terms of the number of transactions executed. However, it is still far behind bitcoin in the volume of transactions on the blockchain or trading on exchanges.
The Asset Is Already Quite Strong
Lastly, Max Kordek – chief executive of the decentralized applications platform Lisk – mentioned:
The Merge will help global sentiment towards crypto and [the blockchain-based third iteration of the internet] web3 because the second biggest blockchain is becoming greener. This is also a necessary step for Ethereum to flip bitcoin, which I foresee happening in the next major bull run.
