Ah, pull up a chair, young one. These past weeks, I've been posting data, analysis, past-curiosities and tales from the world of crypto. I bring you one more curiosity. There's a term that has captured the imagination of many: "The Flippening." But what exactly is it? Let me tell you a story, my young cryptocurrency friend.
The Flippening refers to the potential future event when Ethereum's (ETH) market cap surpasses that of Bitcoin's (BTC). It signifies a paradigm shift, where Ethereum would take the crown as the most valuable cryptocurrency. This isn't just about numbers; it's symbolic of the changing tides in crypto priorities, use-cases, and the community's belief in the potential of different blockchain platforms. All of this sounds very far from reality, right? Nothing can go above Bitcoin; it won't happen.
Chart: Selfmade; Data: CoinMarketCap
But did you know that this event almost materialized once? In early 2017, Ethereum was valued at just over $10. By June 2017, its price had skyrocketed to over $400, marking an astounding 3,900% increase in just half a year. ETH ended the year at $800. During this period, the gap between the BTC and ETH market caps narrowed significantly, with Ethereum reaching over 80% of Bitcoin's value. The crypto community was abuzz with speculation and predictions.
BTC down 10.61% and ETH up 12.22% compared to today. Chart: Selfmade; Data: CoinMarketCap
Many in the community felt it was only a matter of time before Ethereum would surpass Bitcoin, while others remained steadfast in their belief in Bitcoin's supremacy. Every uptick in Ethereum's value reignited the conversation about "The Flippening," and every downturn brought a collective sigh of relief from those rooting for Bitcoin.
While the ETH Flippening didn't fully materialize, we did have a flippening that wasn't talked about much, at least for a brief period in 2018. Altcoins and all other coins that weren't Ethereum surpassed Bitcoin in market cap. The Altcoin Mania or Alt-season.
Eventually, Bitcoin retained its top spot. And ETH moved away from a flippening, and it's no longer talked about, but the event showcased Ethereum's growing influence and the increasing interest in its smart contract capabilities and decentralized applications.
As we move forward, the possibility of a ETH Flippening remains in the mind of some. Whether or not it happens, it's clear that both Bitcoin and Ethereum have carved out significant niches in the crypto space, each with its unique strengths and contributions.
Full chart below, in case you're curious about how these metrics have evolved since 2013:
This is all for today, until another time, farewell my friends.
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