In a recent Q2 2024 LP letter shared by Nick Tomaino, the CEO of the crypto investment firm 1confirmation, a bold market prediction has emerged. Tomaino believes that Ethereum (ETH) might eventually surpass Bitcoin (BTC), a phenomenon often referred to as “flipping.”
1confirmation’s strongest crypto thesis includes Ethereum challenging Bitcoin’s market reign. The 1confirmation CEO predicts that the Ethereum market cap will flip the Bitcoin market cap in the next five years. Today, the BTC market cap is nearly four times the ETH market cap. However, Tomaino believes that both will continue to grow, but ETH will eventually flip BTC.
According to Tomaino, Bitcoin has a clear narrative (digital gold) that institutions have bought into by now. While Ethereum has been the most impactful blockchain in the crypto space for the past five years, ETH is not yet well understood. Tomaino emphasizes that Ethereum is the chain in which talented developers are building the decentralized internet and ETH is the digital oil that powers it. He believes that ETH is scarce, yield-bearing, and useful. Since its market cap is significantly smaller than BTC, Wall Street can own more of it, allowing for aggressive promotion of the ETH narrative to the world in the coming years.
At the time of writing, ETH was up 3.96% in the last 24 hours to $2,774, while Bitcoin was posting higher gains, up 3.94% in the same timeframe to $64,308. BTC experienced a recovery after Fed chair Jerome Powell’s speech at Jackson Hole, breaking out of the $58,000 to $62,000 range. Ethereum spot ETF saw a total net outflow of $5.6976 million on Aug. 23, with seven consecutive days of net outflow. Grayscale ETF ETHE had an outflow of $9.7656 million, while VanEck ETF ETHV had an inflow of $2.0063 million. The total net asset value of Ethereum spot ETF is $7.652 billion. Ethereum ETFs officially began trading in the U.S. in July, providing more options for professional investors and advisors.
While Tomaino’s prediction of Ethereum surpassing Bitcoin is indeed bold, it is grounded in the belief that Ethereum’s technological advantages and utility will eventually lead to a market cap flip. As both cryptocurrencies continue to gain traction and adoption in the financial world, the next five years will be crucial in determining the outcome of this potential flippening. Investors and enthusiasts alike will be watching closely to see how this market prediction unfolds.