Ethereum is close to losing its stablecoin dominance, with Tron accounting for over 55% of stablecoin volumes and 89% of stablecoin transaction counts. Also, the price of Ethereum against Bitcoin recently reached its lowest level since February 2021, dropping to 0.046. Following “The Merge” in September 2022, ETH/BTC has fallen by 45%.
The Price of Ether Keeps Bleeding Against Bitcoin. Is the ‘Flippening’ Dream Over? he dream of Ethereum surpassing Bitcoin’s market cap, known as “the Flippening,” seems more distant than ever. ETH/BTC recently hit its lowest point since February 2021, falling to 0.046. Since “The Merge” in September 2022, ETH/BTC has dropped by 45%.
Rumors have been sparked: Is the ‘Flippening’ Dream Over? Observers have pointed out that ETH’s mainnet activity has been quiet, with transaction fees at multi-year lows mainly due to increased Layer 2 activity. Critics worry that L-2s, whether sidechains or rollups, might struggle under regulatory pressure, especially concerning privacy services.
However, some are optimistic and believe in the potential of regulatory advancements and Ethereum’s strong position in stablecoin issuance, indicating that positive legislation could benefit ETH/BTC. They see Ethereum as crucial to enhancing the US dollar’s presence in the crypto world. They suggest regulatory clarity and ETF approvals could drive ETH prices higher, though a rejection might cause a short-term dip before a rebound.
Ethereum: Navigating The Changing Trends
Echoing similar sentiment is Joe Di Pasquale of BitBull Capital, who cited historical trends where bitcoin initially rises faster after market crashes, but ETH and other altcoins catch up and often outperform in subsequent years.
Meanwhile, Ethereum’s fate is about to change as it awaits the SEC verdict. While the regulator’s decision could have a potential cascading effect on the broader crypto market, there are discussions that the current chair of the U.S. Securities and Exchange Commission [SEC], may find it difficult to classify the leading altcoin as a security using the Howey Test.