- 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 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 Flippening is inevitable, sorry Sunny.
— Evan Van Ness (@evan_van_ness) July 27, 2021
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.
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.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?