Market Prediction: Ethereum to Surpass Bitcoin?

A bold market prediction has emerged from Nick Tomaino, the CEO of the crypto investment firm 1confirmation. Tomaino believes that Ethereum (ETH) might eventually surpass Bitcoin (BTC), a phenomenon often referred to as “flipping.”

In its recent Q2 2024 LP letter shared by Tomaino, 1confirmation puts forward its strongest crypto theses presently, which includes Ethereum challenging Bitcoin’s market reign.

Tomaino predicts that the Ethereum market cap will flip the Bitcoin market cap in the next five years. Currently, the BTC market cap (over $1.2 trillion) is nearly four times that of ETH ($321 billion). However, Tomaino believes both will continue to grow, with ETH eventually surpassing BTC.

Reasons Behind the Prediction

According to Tomaino, BTC has a clear narrative (digital gold) that institutions have embraced. In contrast, while Ethereum has been the most impactful blockchain over the past five years, its capabilities are not yet fully understood by the general public. He emphasizes that Ethereum is the chain where talented developers are building the decentralized internet, and ETH acts as the “digital oil” that powers it.

Tomaino argues that ETH is scarce, yield-bearing, and useful. Since its market cap is significantly smaller than BTC, Wall Street can acquire more of it, enabling a stronger push for the ETH narrative in the coming years.

Current Price Action

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% to $64,308.

BTC has finally seen the recovery the market had been anticipating, driven by a recent speech from Fed Chair Jerome Powell at Jackson Hole, which catalyzed a breakout from the $58,000 to $62,000 range. Rate cuts for September seem confirmed, but specifics remain unclear, making August payrolls critical.

On the other hand, Ethereum spot ETFs experienced a total net outflow of $5.6976 million on August 23, marking seven consecutive days of outflows. Grayscale’s ETF ETHE saw an outflow of $9.7656 million, while VanEck’s ETF ETHV noted an inflow of $2.0063 million. The total net asset value of Ethereum’s spot ETF is $7.652 billion.

Ethereum ETFs began trading in the U.S. in July and have become a preferred vehicle for many professional investors and advisors.

This article was originally published on U.Today