ETH more valuable than BTC? CryptoQuant CEO expects flippening Yesterday the long-awaited ETH 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 ETH upgrade before the switch to Proof of Stake.The EIP-1559 (ETH 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.How these properties actually affect trading activities and Ether performance will be shown in the coming weeks.But “London” has already achieved one thing: The old Flippening issue is boiling up again.
Is ETH pressing ahead of BTC? To refresh your memory: “Flippening” refers to the moment in which ETH BTC overthrows the 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.BTC is still worth more than twice as much as ETH 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 one interview with the blog Wu blockchain Ju explained that the EIP-1559 represents a “turning point” for ETH and a promising approach to the blockchain trilemma of scalability, security and decentralization.
He emphasized the throttling of the 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, ETH could eventually displace the top dog: “I think that ETH could turn the BTC 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, ETH 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 blockchaincenter.net follow up.
There is a selection of indicators that show a shift in the balance of power.Unsurprisingly, ETH has long left BTC 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, ETH is ahead of BTC.It remains to be seen whether this is to be seen as a success..
