While the bear market is still in full swing, several experts are currently discussing when the “flippening” will happen. Flippening is described as the scenario where another cryptocurrency overtakes Bitcoin (BTC) in terms of market capitalization.
Ethereum is considered the most likely option by many crypto investors – including Jordi Alexander, CIO of Selini Capital. In an interview with Crypto Banter, Alexander said that he’s not really a proponent of the flippening, but believes it will happen at some point.
“I do think it’s going to happen, temporarily at least. It may not stick. I think it’s likely that it will flip and then we’ll see a re-flip,” the CIO said. Further, he stated that he is generally an advocate of Ethereum as it has a lot of use cases as a decentralized app network.
“But I’m not one of the believers in ultra sound money,” Alexander continued, stating that the meme that ETH is a better version of Bitcoin and a better version of money, in his opinion, completely misses the point of game theory and psychology of crypto.
Not a meme, on the other hand, is a supply squeeze that Ethereum will see at some point, he said. “I think it’s a great tech investment. And I think the tokenomics are great and that we’ll see a supply squeeze at some point. […] It’s not just a meme. At some point you will run out of coins and where we will see an explosive movement,” Alexander predicted.
For retail investors, Alexander recommended that they allocate half of their capital to Bitcoin and Ethereum, with a weighting of 60% ETH and 40% BTC, considering the current market conditions. The remainder he would allocate to identifying new narratives.
Ethereum (ETH) Could Outperform Bitcoin
Not only the CIO of Selini Capital but also the senior analyst at Bloomberg Intelligence, Mike McGlone, predicts an outperformance of Ethereum versus Bitcoin. McGlone stated yesterday that Ethereum could be the top candidate to keep topping the first-born cryptocurrency.
“Ethereum’s advances vs. Bitcoin have been unshaken by 2022 deflation in most risk assets and may be gaining underpinnings,” McGlone said. As the Bloomberg analyst notes, the Ethereum/Bitcoin ratio is currently around 0.08, the same level as in May 2021, when the Nasdaq 100 stock index was about 20% higher.
Our graphic shows the trend of the no. 2 cryptocurrency outperforming no 1, which appeared coincident with the rise of risk assets. […]
Migration into the mainstream is our takeaway, and once dust settles from some reversion in risk assets amid inflation pressures, Ethereum is more likely to resume doing what it has been — outperforming.
Chris Burniske who led ARK Invest’s crypto efforts and is now a partner at Placeholder VC commented:
ETH will make its most serious attempt yet for #1 position next expansion.
The expert referred to a tweet by Ryan Berckmans, in which he outlined that Ethereum is well on its way to the flippening. “The ratio has never done so well in a bear market,” Berckmans stated.
At press time, the Ethereum price stood at $ 1,211 and was rejected at crucial resistance at $1,220.
Featured image from Traxer | Unsplash, Chart from TradingView.com
Source link: https://newsbtc.com/news/ethereum/ethereum-overtake-bitcoin-temporarily/
