Flippening becomes more likely as ETH trade volume growth exceeds BTC in first half of 2021

  • The growth in the trade volume of Ethereum exceeded that of Bitcoin so far in 2021, according to a report from Coinbase Global Inc. 
  • Increasing popularity of decentralized finance and the rise of scaling solutions are among key factors contributing to Ethereum's performance. 
  • Ethereum's market cap is more likely to exceed Bitcoin's based on its performance in 2021. 

The first half of 2021 significantly improved Ethereum's price and its adoption among institutional players. The recent price action and increasing demand are fueling the flippening narrative. 

Ethereum outperformed Bitcoin in past six months, flippening probability increased

As the second most valuable cryptocurrency, Ethereum's trade volume grew faster than Bitcoin in the first six months of this year. Total ETH volume hit $1.4 trillion, up from $92 billion in the first half of 2020. In the case of BTC, it reached $2.1 trillion, up from $356 billion over the same period last year. 

The volume of ETH traded grew by nearly 1461% against Bitcoin's 489% compared in the same time period. The statistics are based on a report published by Coinbase Global that considers data from the top 20 cryptocurrency exchanges. 

BTC/USD and ETH/USD total exchange trade volume

BTC/USD and ETH/USD total volume

Ethereum's five-year performance got a boost in the past two quarters, which has brought ETH's total returns to 17,962%. A few factors driving the ETH rally were the increased usage of DeFi protocols and the rising optimism of traders and investors in anticipation of the upcoming London hardfork. 

Both BTC and ETH have rallied since May 2021; however, ETH continues to outperform BTC in terms of growth in trade volume. The probability of flippening, otherwise known as the possibility of the market capitalization of Ethereum overtaking that of Bitcoin, is now higher based on the recent turn of events. 

The long-awaited implementation of the EIP-1559 protocol in the London upgrade fuels the flippening narrative.  

Evan Van Ness, a member of New York based blockchain technology company ConsenSys recently replied to a tweet, stating that the flippening is inevitable. 

The bullish outlook among crypto traders persists as ETH's price has appreciated over 240%, at its peak, since the beginning of 2021. ETH/BTC hit a high of 0.08193 in mid-May 2021 based on price data from Coinbase.

ETH/BTC chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cardano partners with Chainlink to drive smart contract development for DeFi applications

Cardano recently announced a strategic partnership with decentralized blockchain oracle network Chainlink. The third-generation blockchain is preparing to build smart contracts for decentralized finance (DeFi) applications.

More Cardano news

Huobi to stop servicing Chinese users as China vows strict crackdown on crypto

A few months after the cryptocurrency mining ban in China, the country issued another update last week, reiterating that digital assets are banned and crypto exchanges are prohibited. Shortly after the announcement was revealed, Bitcoin and altcoins plunged.

More Cryptocurrencies news

Ethereum bears contemplate a drop to $2450

ETH price is building up downside pressure while clinging to the 200-SMA support. RSI remains flat below the midline, keeping the sellers cheerful. A drop towards $2450 remains in the offing if the 200-SMA caves in.

More Ethereum News

Polkadot price at make-or-break point

Polkadot price spots a potential symmetric triangle pattern on the 1D chart. RSI stands neutral at 50.00, suggesting a lack of clear directional bias. 21-DMA offers immediate resistance.

More Polkadot News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast