Is The Hypothesised Ethereum Flippening A Step Closer To Happening Due To The Merge?
Anthony Di Iorio, one of the co-founders of Ethereum (ETH), believes that Ethereum can surpass Bitcoin if it maintains its evolution. Ethereum founders are, however, concerned that the Merge (the transition from the proof-of-work to the proof-of-stake consensus) could affect the Flippening. Di Iorio stated that even if Ethereum had no issues with decentralisation, he’s not sure it won’t experience centralisation risks due to the proof-of-stake consensus protocol.
If you’re reading this article, chances are you are a seasoned crypto trader who keeps an eye on the news to grasp the latest details about the Merge and how it impacts the market. Since Ethereum founders revealed they’re about to transition the digital ecosystem from a proof-of-work to a proof-of-stake consensus, speculation has been rife if Ethereum will flip Bitcoin, the most popular digital token, and become the reigning cryptocurrency.
What does the Flippening imply?
You noticed that we used the term Flippening earlier and might wonder what it implies. Well, since its launch, all crypto traders know that Bitcoin has topped the crypto sector in market capitalisation. However, it became its main competitor after Ethereum joined the race and introduced smart contracts (which are the foundation for non-fungible tokens and decentralised finance).
Even if some Bitcoin enthusiasts argue that the first cryptocurrency will always remain the primary decentralised token to dominate the industry due to its limited supply, experts think Ethereum can overtake it because it offers other functions. The hypothetical event of Ethereum overtaking Bitcoin is called the Flippening.
The Flippening started gaining popularity on social media platforms like Twitter and Reddit in March 2017, when Bitcoin’s market dominance dropped from 95.88% to 51.37%, and eth price started to grow. In June 2017, the Flippening was close to coming to life because Bitcoin’s dominance dropped to 40% and Ethereum’s spiked to 32%.
