Bitcoin is the original cryptocurrency, and until very recently was hands down the dominant crypto. And then ethereum came along.
Now, as Marketwatch reports, the two cryptocurrencies’ market caps are on a collision course:
Ethereum’s market capitalization is nearing bitcoin’s, as shown in the chart below from CoinMarketCap.
As of Wednesday, bitcoin BTC/USD, -5.69% (shown in orange on the chart) accounted for 39% of the combined market capitalization for all cryptocurrencies, down sharply from 87% on Feb. 25.
Blame the erosion on ethereum (shown in purple), which now makes up 31% of the total market cap, up from just 5% less than four months ago.
Insiders are referring to ethereum’s potential market cap overtaking that of bitcoin as “The Flippening.” The implications of the shift aren’t yet clear, but the crypto world is certainly paying a lot of attention to it.
Ethereum is already well ahead of bitcoin in terms of the number of nodes in its network. That means significantly more users are using their computers to support it.
Would a larger market cap mean ethereum has officially taken over for bitcoin as the #1 cryptocurrency? Definitely not, but it could wind up being another domino in a series that upends bitcoin in the public consciousness.
The ultimate determining factor will likely be price. If ethereum surpasses bitcoin in dollar value, it would most likely become the de facto standard for cryptocurrencies.