Ethereum enthusiasts have always dreamt that it will surpass Bitcoin, a process called the Flippening in the industry. However, after the last Halving, the dream seems pretty far because the current Bitcoin price is quite high, and Ethereum finds it challenging to match it.
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Data shows that historically Ethereum performed extraordinarily and it was close to surpass Bitcoin in value many times, so one can’t help but wonder whether these are signs of the Flippening.
Simply put, the Flipenning is a term that describes a situation when Ethereum’s market value outperforms Bitcoin’s. It’s no secret that Ethereum and Bitcoin are twin pillars of the crypto industry, commanding a significant percentage of its overall market cap.
Bitcoin’s market capitalization is beyond $1 trillion, while Ethereum’s is nearly $370 billion. For a while now, there has been a debate about Ethereum potentially surpassing Bitcoin, and given that the sector is heading towards a bull phase, there are valid reasons to believe that the Flippening might still happen.
What Causes Capital Flow in the Ethereum Network
According to core market data, capital flows could be the reason why ETH price surpasses that of BTC. But what are the reasons behind these capital flows? Well, it all has to do with the speculations that have kept dominating media headlines, namely regarding the Dencun upgrade and ETH ETFs.
The former represents a significant milestone in the Ethereum ecosystem, as it has the role of boosting the scalability and efficiency of the network. Through blobs and proto-dank sharding,
Ethereum seeks to address significant challenges that blockchain networks face, resulting in substantial increases in the processing capabilities of Ethereum. The Dencun upgrade is set to fuel a price rally for ETH, making the digital asset more competitive in the crypto space.
The anticipation for the approval of an ETH ETF also creates opportunities for the Ethereum ecosystem, potentially resulting in heightened liquidity, enhanced accessibility for traditional investors, and increased credibility for the overall cryptocurrency market.
In light of these exciting events, it’s no wonder why Ethereum could do better in 2025: ETH Open Interest rose from $5.1 billion to $5.7 billion, representing a jump of 11% that occurred over the course of ten days at the beginning of 2024.
On the other hand, BTC Open Interest experienced a drop of 4% in capital stock, decreasing from $10.1 billion to $9.7 billion. Simply put, open interest represents the capital currency’s total value that is invested in an active futures contract for a particular digital asset.
Considering the historical interconnection between Ethereum and Bitcoin, this difference in open interest trends shows that investors started favoring ETH instead of BTC due to recent news and speculations regarding the future of Ethereum.
A Look Into Ethereum and Bitcoin’s Real-world Applications
Bitcoin and Ethereum have always been seen as competitors in the market, but it’s worth noting that both of them have driven innovation in the crypto sector.
Bitcoin has seen massive growth in its use cases in the first quarter of last year, showing a heightened interest from developers. This growth has a lot to do with the Stacks blockchain that allows the creation of defi apps, smart contracts and NFTs on Bitcoin, making it more than just a store of value.
On top of it, Ordinals, which was launched in January 2023, further enhanced the use cases of Bitcoin by enabling information to be attached to satoshis via inscribing. This was a significant innovation that allowed for the development of Bitcoin-native NFTs, representing a major evolution in the functionality of Bitcoin.
Ethereum also shined in its own way, standing out as a frontrunner in enabling the creation of different defi platforms, Dapps, NFTs, and so on – all thanks to the capabilities of smart contracts.
While introducing Ordinals on the Bitcoin blockchain has represented a significant development, Ethereum is still the winner when it comes to the NFT sector.
Ethereum isn’t only the go-to platform for creating NFTs but also the backbone of DeFi, enabling different financial services, whether lending, trading, borrowing, and so on. Its diverse applications make Ethereum genuinely valuable, representing the most used blockchain when it comes to real-world asset tokenization.
Will Ethereum Succeed In Flipping Bitcoin In The Long Run
Bitcoin has long been considered digital gold, as it represents a secure store of value. Similarly, Ethereum is associated with digital oil, enabling different applications that go beyond financial transactions.
Given Ethereum’s role in running DeFi protocols and other similar applications, it could be easy to think that Ethereum has all the reasons to eclipse the value of Bitcoin in the near future. Still, such forecasts should be taken with a grain of salt.
Let us not forget the unpredictability of the crypto sector – although Ethereum seems to have received more interest than Bitcoin, that could easily change at any moment. Besides, Bitcoin is likely to keep maintaining its solid position in the market.
The most likely scenario is that both Ethereum and Bitcoin will continue to coexist in the crypto industry, just as they did all this time, serving unique purposes that contribute to a thriving ecosystem.
While there’s indeed potential for Ethereum to surpass Bitcoin in terms of market cap, it’s hard to believe that the latter will lose its relevance and resilience, given its broadening use cases and its status as digital gold.
The Chance of Flippening
Both Ethereum and Bitcoin have experienced significant growth over the years, and they are still the two most reliable digital assets in the entire crypto market.
And their evolution doesn’t seem to end anytime soon, as major upgrades are on the horizon, aiming to make the two assets even stronger. One may wonder which of the two cryptocurrencies may be a better buy, but the truth is that it all comes down to your individual needs and goals.
Looking ahead, both digital assets are likely to hit new milestones and take the crypto industry to new heights. It’s essential to watch Bitcoin and Ethereum closely to see how they will evolve and what new opportunities they will bring throughout their journey to redefine money in the digital age.
