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HomeNewsEthereum more valuable than Bitcoin? CryptoQuant CEO expects flippening

Ethereum more valuable than Bitcoin? CryptoQuant CEO expects flippening

Yesterday the long-awaited Ethereum Hard Fork “London” took place. The EIP-1559 in particular is seen as a catalyst for the growth of the network. If CryptoQuant CEO Ki Young Ju has its way, the “suggestion for improvement” could create a new balance of power in the crypto market.

The Ether community agrees: Yesterday’s hard fork “London” marks the most important Ethereum upgrade before the switch to Proof of Stake. The EIP-1559 (Ethereum Improvement Proposal) installed with the fork not only increases user-friendliness by reducing transaction costs through a basic fee based on block utilization. It also has a deflationary effect as the charge is burned and the amount in circulation is reduced. The coming weeks will show how these properties actually affect trading activities and Ether performance. But “London” has already achieved one thing: The old Flippening issue is boiling up again.

Is Ethereum pressing ahead of Bitcoin?

To refresh your memory: “Flippening” refers to the moment when Ethereum pushes Bitcoin from its throne and brings a higher market capitalization than the crypto key currency on the scales. So far, the conditions on the crypto market have been pretty clearly regulated. Bitcoin is still worth more than twice as much as Ethereum and accounts for almost half of the total market capitalization. But the scenario doesn’t seem impossible. Especially when the network effects triggered by London gradually unfold. In any case, Ki Young Ju, CEO of the analysis platform CryptoQuant, is convinced of this.

In an interview with the blog Wu blockchain Ju explained that the EIP-1559 represents a “turning point” for Ethereum and a promising approach to the blockchain trilemma of scalability, security and decentralization. He emphasized the throttling of fees as a booster for applications in the DeFi and NFT area. “If we can use these services with very low fees, the number of transactions would increase and network activity usually increases the value of the blockchain, which increases the price in the long run,” said Ju. However, he is unsure “whether the price will move in the short term.”

“Just” a question of money

In the long run, Ethereum could eventually displace the top dog: “I think that Ethereum could turn the Bitcoin market capitalization around in the long term, but not this year”. A decisive factor here, however, is the “big money”. The CryptoQuant managing director believes that a flippening would only be likely if institutional investors were to gain money: “Without institutional demand, Ethereum cannot turn the market capitalization of BTC.”

How realistic the scenario actually is has long been the cause of bitter exchanges between the camps. That the flippening is at least partially in full swing can be seen follow up. There is a selection of indicators that show a shift in the balance of power. Unsurprisingly, Ethereum has long left Bitcoin behind in terms of transaction volume. The trading volume and the number of active addresses are already moving towards flipping. And when it comes to transaction fees, Ethereum is ahead of Bitcoin. It remains to be seen whether this is to be seen as a success.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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