Are we close to an Ethereum flippening? 5 things to look out for

Can ETH really overtake BTC? Many traders and crypto investors actually believe this, and they call it the flippening… but can it really happen? Even though chances are not since BTC remains the leader in the market, there are 5 things you should look out for in order to confirm this scenario.

This guide will share with you the evidence we have so far now, and hence, this information will help you to make critical decisions about your portfolio, positions and future investments. If the ETH flippening takes place, it would drive the FOMO in, and that would cause a lot of things…

  • ETH’s call options on platforms like FTX and Bitlevex will go through the roof – liquidating all the ETH’s put calls
  • Likewise, longs will get their summer while shorts will get liquidated
  • Projects on the ETH blockchain are going to take advantage of the growth and FOMO – causing them to raise their price
  • The main driver of the tendency of the market would be ETH, so, it’d make traders pay more attention to the ETH dominance, and that could affect the entire market cycle.

Simply put, it would make it pretty profitable for all the projects, options and assets linked to ETH, but it would also change the way the market behaves. Now that you know the possible effects, let’s talk about the 5 things to look out for.

#1 – ETH dominance vs BTC dominance

The first thing to watch is the BTC dominance vs. ETH dominance. As you can easily guess, BTC is the most dominant coin in the market, representing the largest share of the total crypto market cap, whereas ETH remains in the second place.

If ETH were to overtake BTC, then we would have to see a drastic change in dominance. In a nutshell, we would need the ETH dominance to show a steady growth composed of bull div after bull div with some bear divs to let the coin breathe. While the BTC.dom would need to be in decline.

Of course, to make this happen, we would need to see real evidence of weakness in the BTC vs. ETH pair. Therefore, you should look out for the next 4 symptoms of a flippening.

#2 – If BTC doesn’t get a blow-off top…

Everyone is waiting for the BTC blow-off top because it will give a start to the alt-season, which is when altcoins grow by x10, x50, x100, x1,000, etc. This is the season when everyone becomes rich, but only those who sell smartly actually retain their profits.

However, if BTC doesn’t get a blow-off top, then it’d be a sign of weakness, especially if ETH gains momentum and actually obtaints its own blow-off top. This is when ETH could flip BTC finally – as it would show that Ethereum has a lot more strength than the Old King.

Nonetheless, BTC not getting a blow-off top could also signal a failed bullish run, and none will like that. We need BTC to be strong, or on the other hand, we need ETH to be strong enough to flip BTC and sustain the bullish run. 

#3 – ETH annihilates its competitors

Solana, PolkaDot, Tezos, Kadena, BNB, amongst others, rank themselves as the possible Ethereum killers. They might never replace ETH, but they’re surely eating up ETH’s market share, and that’s going to prevent it from flipping BTC.

Therefore, if ETH actually succeeds in annihilating its competitors by showing its superiority, then we could have a real shot at ETH overtaking Bitcoin. However, ETH needs to solve critical problems, such as reducing the gas fees, improving transaction speed, increasing the efficiency of their chain, etc. 

#4 – ETH gets a hold of the hottest narratives

Furthermore, to fuel the flippening, ETH would also need to gain traction by taking a hold on the hottest narratives such as the metaverse, gameFi, NFTs, etc. There are already popular projects built on the ETH network, but since the fees are so high, they are preventing their growth. An example is $MEGA, a metaverse project. If it weren’t for the high gas fees, it could grow to become one of the main players in the metaverse sector.

#5 – ETH as a reserve of value

Finally, we would also need investors and traders to look at ETH as a reserve of value. There’s a reason why BTC is the kind, and it’s because it was the first cryptocurrency. However, it’s also used a store of value, and if ETH wants to flip it, then it would have to be seen the same way by investors.

In conclusion, if BTC doesn’t have a blow-off top and starts losing dominance in a drastic way, while ETH gains dominance, gets fueled by hot narratives and annihilates its competitors, then we could finally see the flippening!

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Christophe Rude

Christophe Rude

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