Ethereum, the second-largest cryptocurrency by market cap, could surpass Bitcoin in the next few years, according to a crypto analyst.
Morgan Bennett, who has a large following on Twitter, posted four scenarios of how Ethereum could overtake Bitcoin in market cap, a phenomenon known as flippening.
He said he based his analysis on the long-term trends of both cryptocurrencies and not on technical analysis, which he said he does not trust.
One scenario is that Ethereum gradually catches up with Bitcoin and flips it around Christmas 2025. He said this would cause some volatility but the market would adjust and continue smoothly after 2026.
Another scenario is that Ethereum’s growth makes Bitcoin holders lose confidence and sell their coins, leading to a crash in Bitcoin’s price and a surge in Ethereum’s price. He said this would weaken Bitcoin’s role as a Schelling point asset, a cryptocurrency that people default to when they are unsure of the value of others.
A third scenario is that Ethereum and Bitcoin compete fiercely for the top spot and switch places several times over months or years. He said this would generate a lot of trading activity, volatility and interest from the outside world. He also said this could benefit the overall crypto market.
A fourth scenario is that Ethereum replaces Bitcoin but fails to maintain its value as digital gold. He said this would result in a permanent loss of trust in the crypto space.
Which one is the most likely scenario? Share yours in the comment.
