Flippening may be defined as an event when a lower-ranked cryptocurrency overtakes Bitcoin in terms of total market cap. For example, the closest ranked cryptocurrency to Bitcoin right now is Ethereum and if Ethereum overtakes Bitcoin, we may call that event as Flippening.
Right now, this might not seem to be a possibility but when Ethereum was trading at its all-time high, many people thought that Flippening was going to take place. Although that didn't happen, Ethereum came very near to achieving this feat.
Earlier, the two main contenders to overtake Bitcoin were thought to be Ethereum and Bitcoin Cash but with time, the hype around Bitcoin Cash died down and I don't think that Bitcoin Cash will ever come close to doing that.
That leaves Ethereum to be the only contender to overtake Bitcoin in terms of market cap. For Flippening to occur, Ethereum will have to do a 7x from where it stands now. While this may not be a big deal for smaller cap coins, but for a cryptocurrency with a market cap of over $26 billion, this is a daunting task. Besides, if Ethereum makes an upward movement, it is highly unlikely that Bitcoin won't do the same which makes Flippening even tougher to happen.
With that said, there has been a tremendous increase in the number of unique Ethereum wallet addresses this year. According to the blockchain analytics website Messari, the number of Ethereum wallets has more than doubled since the start of this year. There has been an increase of 118% in the unique Ethereum wallet addresses compared to a mere 49% increase in Bitcoin wallet addresses.
The DeFi Craze
Now the obvious reason for this growth is Ethereum's decentralized finance. There are plenty of dApps built on top of Ethereum and it was reported that more than 97% of the dApp volume came from DeFi apps. DeFi has been touted as the next big thing after ICOs and with Ethereum staking also coming, it is only going to make Ethereum stronger.
The total number of unique Bitcoin wallet addresses is still more than Ethereum's unique wallet addresses but I believe that Ethereum will overtake Bitcoin in terms of unique wallet addresses by the end of this year.
So, do I think that Flippening is on the cards?
Yes, I believe it might happen. It might not occur in the coming bull run but maybe, sometime over the next 4-5 years. And of course, this represents my own views. I may be wrong and Flippening might never occur.
Let me know your take on this.
This is not financial advice. These are personal thoughts and they are meant for information purposes only.DYOR before investing.