“The price could skyrocket”: that’s when Ethereum could launch Bitcoin

Bitcoin
BTC
and ethereum are by far the two largest cryptocurrencies in terms of value, although they could change by 2040.

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The massive bull run in the price of bitcoin in 2021 catapulted its market cap to over $ 1.2 trillion last year. It has since returned to just $ 400 billion. Meanwhile, Ethereum’s huge price hike saw it soar to over $ 500 billion before dropping to just over $ 200 billion.

Now, some traders and investors predict that the price of ethereum will rise following its long-awaited and radical upgrade, potentially making ethereum more valuable than bitcoin for the first time, an event known as “the flippening”.

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“Investor interest in ethereum has remained resilient as it approaches the merger, its once-in-a-lifetime event that will see the entire network migrate to proof-of-stake,” Gabriel Selby, chief research analyst at the index provider of cryptocurrency CF Benchmarks said via Twitter. “Some have suggested it could be the catalyst for ethereum to overtake bitcoin as the world’s largest currency by market cap.”

This week, ethereum is expected to complete its transition from the energy-intensive proof-of-work consensus mechanism used by bitcoin to the more energy-efficient proof-of-stake, removing ethereum’s dependence on miners and passing control. to those who “stake” their ether on the net. The move is expected to reduce Ethereum’s carbon emissions by 99%, according to the Ethereum Foundation.

Bitcoin’s dominance, a measure of its value relative to other cryptocurrencies, has fallen below 40% in recent weeks, down from a spike of nearly 50% earlier this year, according to data from CoinMarketCap. Ethereum has seen its market share rise to over 20%, from lows of less than 15%.

“Since the beginning of the year, the market cap ratio between bitcoin and ethereum has converged to the tightest differential since May 2021. If the current trend persists, ethereum could reach the top of the chart by the end of 2023, or sooner. Selby said.

While bitcoin has developed a reputation as digital gold due to its immutability and resistance to both change and censorship, ethereum is designed to be used as the foundation of a blockchain-based decentralized internet, an idea that has become known as web3.

“With the proliferation of financial products that have allowed a much wider range of investors to voice their views on pricing in cryptocurrency markets, such as CME’s recently launched ethereum options contract, mechanisms are in place for capitalization market share of ethereum exceeds bitcoin, should there be a buy-in from enough investors, “Selby added.

Earlier this year, ethereum co-founder and project spiritual leader Vitalik Buterin revealed his plans for ethereum following the “union” update, with the subsequent “surge” in a series of improvements designed to make the network more secure and decentralized, followed by the hem, drop and flaunt upgrades.

“We believe ethereum is of great use and once the code elimination phase begins in 2023, it will be a great blockchain with even greater adoption,” said Martin Hiesboeck, head of blockchain and cryptocurrency research at the platform. Uphold cryptocurrency trading, via email, adding: “The [ethereum] the price could skyrocket. “

Over the past year, ethereum has seen a boom in demand due to the growing popularity of non-fungible tokens (NFTs), digital art and media that are tokenized on the ethereum blockchain.

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“Ethereum has already surpassed bitcoin in terms of the number of transactions executed,” Daniel Kostecki, senior financial analyst at investment firm Conotoxia. “However, it is still far behind bitcoin in the volume of blockchain transactions or trading on exchanges.”

Kostecki warned that it will be “difficult to overtake a coin that was the first in the world and whose issuance is limited”. Even if others are more confident, the reversal will eventually happen.

“The union will help global sentiment towards cryptocurrencies and [the blockchain-based third iteration of the internet] web3 because the second largest blockchain is getting greener, “said Max Kordek, CEO of decentralized application platform Lisk, in emailed comments.” This is also a necessary step for ethereum to flip bitcoin, which I predict will happen. in the next major bull run. “

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