The silver cryptocurrency has been doing well following the revival of the bullish wave in the cryptocurrency world. In the last two weeks, Bitcoin has gone from $30K price level to $45K setting off green candles in the entire altcoin market. The effect of bullish correction has also trickled down to Ethereum, which has been the second-largest cryptocurrency for a long time.
New data from CoinMarketCap shows that Ethereum market dominance has been supplemented by more than 7% in a matter of 5 months. On the other hand, the rest of the altcoins and DeFi sector has stayed at a $120 billion market cap with $80 billion present in contracts and funds that are unable to flow in the open market.
Many Analysts Believe in Ethereum Flippening
The Flippening event is a hypothetical situation where Ethereum can overtake Bitcoin and become the highest-ranking cryptocurrency in terms of market cap. This idea was first introduced during the ICO popularity era. During this time, the market cap of Ethereum surged by many folds and reached very close to Bitcoin market capitalization. Therefore, investors started to speculate the possibility that ETH may take the leading position on the crypto board.
Other events that also added value to Ethereum blockchain are the rise of DeFi and NFT markets. At present more than 200 DeFi projects are hosted on the Ethereum ecosystem. Meanwhile, there is also a highly populated NFT market, and both of these projects bring considerable inflows to the network. Following the release of CyberPunk NFTs, a high amount of transaction volumes were recorded on the NFT marketplace.
The Ethereum network has a major advantage over Bitcoin in that it is possible to upgrade the system. Following the highly anticipated London hard fork upgrade, many ETH stakeholders received the EIP-1559 protocol with great enthusiasm. This new upgrade helped in making the token more deflationary. It also makes way for keeping gas fees for the Ethereum network under control.
Before EIP-1559, the transaction fees went to miners as a revenue method. When the network was highly populated, the gas fee also raises by many folds creating transaction difficulty for investors. However, now the gas fees are burned, and the investors have the option to tip the miners if they want to. Now, even when the Ethereum network is highly populated, the gas fees do not rise as much as 5-10 times.