The battle for supremacy between Bitcoin and Ethereum continues to rage with Ethereum proponents increasingly believing that Ether could soon flip Bitcoin.
The latest argument is coming from WeekInEth founder Evan Van Ness. Quoting Fred Wilson, a renowned venture capitalist and co-founder of Union Square Ventures, the Ethereum expert could not agree more that Ethereum’s market cap will surpass that of Bitcoin in 2022.
Expect The Flippening In 2022
According to Fred, the grand flippening will come as a result of various issues, some bedeviling the Bitcoin network and new developments which seek to upgrade Ethereum’s network in 2022.
In the past years, Ethereum has undergone a series of upgrades aimed at fully transitioning the network from a Proof of Work (POW) to Proof of Stake (POS) consensus in what will now become ETH 2.0
Earlier in the week, the ETH 2.0 Beacon chain successfully launched with calls for the community to test it ahead of the “Merge” which will see an end to energy-intensive mining, slashing Ethereum’s energy consumption by 99%.
Fred believes that the merge which precedes the rollout of shard chains will attract millions to the network, bringing a ton of liquidity which translates into a parabolic growth of the network’s market capitalization which is currently $400 billion short of toppling bitcoin’s.
“Ethereum’s merge in 2022, combined with the understanding that productive assets must be worth more than non-productive assets, make this a fairly obvious prediction,” he says.
Bitcoin Still Stuck In The Mud
In the past, Bitcoin maximalists have come under fire from quarters who believe that they have nothing to support their pro-Bitcoin arguments apart from pumping price. Fred equally refers to their reliance on the cryptocurrency’s “capped supply as nothing more than a marketing meme”.
“If you look at the greater crypto market, the misallocation is even crazier with XRP or the ghost chains and zombie chains with billion dollars of market cap and no users. Not to mention the hordes of outright scams, including more than a few in the top 25 crypto market caps,” he adds.
L2 Rollups Pivotal To ETH 2.0 Market Cap Growth
Even before the transition, despite sky-high gas fees being Ethereum’s kryptonite, layer 2 roll-ups on the network are already attracting a lot of attention just like Vitalik Buterin predicted in 2015. The network has recorded astronomical growth through the Total Value Locked(TVL) in Defi apps as shown on DeFiLamma. According to Fred, “The growth in this decentralized finance (”DeFi”) is a hockey stick.”
Transactions on these rollups are also scalable meaning that when phase 1 of Eth2 goes live, that capacity is expected to go up drastically.
Currently, Ethereum’s market dominance (20.4%) has surpassed half that of Bitcoin (37.3%) and promises to increase drastically once Ethereum fully transitions into a POS consensus mechanism.