By
Benjamin Njiri
April 23rd, 2024
The cryptocurrency ecosystem is definitely changing with altcoins rising in value and endangering the indisputable leadership of Bitcoin.
You might have heard the term “flippening” that is used quite often in Bitcoin area nowadays. But what is “flippening” and why should we have a clear understanding of this trend if we claim to be cryptocurrency experts? Let’s find out.
It is obvious that the cryptocurrency landscape can’t always keep steady and from time to time small or considerable changes happen. For the past several years, the interest of consumers, investors, traders, and speculators to Bitcoin has been growing even despite some cryptocurrency drawbacks. Other altcoins seemingly derived its value from being paired to Bitcoin’s price. Thus, the value of altcoins used to go down if Bitcoin’s price took a hit.
Now, some things seem to be changing in the cryptocurrency world. There are Bitcoin “maximalists” who believe that everything will be alright and hold onto their Bitcoin supply. They reject the importance of altcoins and treat them more like “second-rate projects”. There haven’t been grounds so far to think that they might be wrong.
Now, the situation is changing. Speculators are actively investing in altcoins as concerns about Bitcoin’s scaling issues grow. It is evident most altcoin traders no longer base individual coins’ value on the bitcoin price.
This paradigm shift in the cryptocurrency world is called flippening. There is an opinion that Bitcoin can lose its leadership over altcoins or at least stop holding such a big lead. Bitcoin’s market capitalization now makes up $45,4 billion and it continues to decrease allowing altcoins to rise in value. For instance, the market cap of Ethereum has already reached $36,4 billion with the price making up $393.
As for now, there are several dozen ICOs offered on top of the Ethereum blockchain. It is natural that Bitcoin cannot be suitable for every possible project. The flippening indicates this competitive industry where there is no single center of focus. Such a change seemed to be impossible just a year ago and now the figures speak for themselves. Competition in the cryptocurrency market can only be a good thing.
We by no means belittle the importance and value of Bitcoin – it is remaining to be the major and most popular cryptocurrency. But the tendency is the development of a more competitive cryptocurrency ecosystem where Ethereum, Monero, Dash, Factom, and others will take their place. Here we explain why Bitcoin and Ethereum are the ones that are rising so fast.
Nearly all of the above-mentioned currencies have risen in value regardless of whether Bitcoin’s price is stagnating or going down. Of course, it might be a temporary trend but the flippening shouldn’t be ignored by any means.