Branded ‘The Flippening’ by market observers, this new hypothetical is defined loosely as the point at which a competing blockchain network could replace bitcoin as the largest and best capitalized blockchain. Sparked by increasing inflows in cryptographic assets, the concept has already seen a dedicated hashtag and website.
In a tweet on Monday, former Bitcoin Foundation Executive Director Fenton said a reoccurrence of Bitcoin’s nine percent fall coupled with Ethereum’s 15 percent gains would result in the latter becoming the world’s largest cryptocurrency.
Fenton added that those investors who pulled out following yesterday’s drop in price had likely performed a “bad trade” as a correction gets underway.
At earlier points in 2017, bitcoin accounted for more than 80% of the total cryptocurrency market share, though this figure has been higher than 90% at times.
However, so-called alternative cryptocurrencies have drawn robust inflows this year, causing their total market cap to reach a record high of roughly $117m today, a more than 500% year-to-date increase, according to CoinMarketCap.
Ethereum’s mammoth leaps have caused it to become the new focus of community attention, as various sides argue over its true value.
Analysts largely believe ethereum’s ether token is most likely to spur the change, given it has increased 3,000% this year with no signs of slowing.
Indeed, ether’s market cap has been drawing steadily close to bitcoin’s amid a broader uptick in interest for so-called ‘tokens’ based on the platform, with the two cryptocurrencies worth $35.9bn and $43.7bn at the time of report.
Charles Hayter, co-founder and CEO of cryptocurrency exchange service CryptoCompare, is optimistic that ethereum could become the dominant blockchain.
“Ether has a strong chance of surpassing bitcoin due to its strong network effect and ability to negate the governance issues that bitcoin has been subject to,” he said.
On Sunday, Twitter commentator WhalePanda released an extensive post on ETH, arguing why it was inferior to Bitcoin on a technical level.
Unlimited supply, ICO hype and other factors contributed to the view that the asset was more likely part of a significant bubble than Bitcoin.
Nonetheless, Bitcoin’s dominance is slipping fast, by market cap now controlling only 40.5 percent of the total.
With further robust trading, very little stands between here and what is known in the crypto community as the ‘Flippening’ – where ETH’s market cap usurps that of BTC.
Mati Greenspan, senior markets analyst at asset trading platform eToro told:
“The development of both bitcoin and ethereum have far-reaching implications for our future world. Respectively, bitcoin and ethereum represent the future of money and the future of the internet.”