Just a few days ago, people were very excited about the potential flippening. This is the instance where Ethereum would overtake Bitcoin’s market cap and become the number one cryptocurrency. While some people still believe this will happen, it now appears we are heading toward the Floppening. As the name suggests, it is the exact opposite of the Flippening. While this is merely a joke term, it is worth explaining the situation.
The Floppening is More Realistic Than a Flippening
We have seen some spectacular growth for Ethereum throughout all of 2017. The currency saw its value soar. The current market trend goes to show all of those gains can be wiped off the table in mere hours. Right now, Ether is struggling to hover around $200. Some bearish traders feel that prices will drop to as low as $100.
Ethereum’s market cap is declining a lot quicker compared to Bitcoin’s. Ethereum had a $34.5bn market cap not that long ago. Right now, that same market cap has decreased by nearly 50% in the course of a few days. It is hard to explain why this is happening right now, although it has been pointed out multiple times Ethereum has some issues which need to be fixed soon.
Bitcoin’s market cap, on the other hand, has taken a few hits as well. With a market cap of $38.5bn, it is quite far away from a high of $46.6bn. However, that is a far smaller decrease compared to Ethereum’s recent drop. This means that Bitcoin is still the dominant currency and will continue to be for quite some time to come. Anyone still holding out hope for a flippening will need a lot of patience.
Instead of the flippening, we are seeing signs of a floppening. When looking at the CoinMarketCap screenshot below, you can clearly see what the floppening entails exactly. It occurs when Bitcoin’s dominance increases once again. This Bitcoin Dominance Index is heading toward 40% for quite some time now, but it is showing signs of a major reversal.
Do keep in mind the floppening may not necessarily last all that long. It is a term to indicate Bitcoin’s market dominance remains stable or grows, whereas Ethereum’s position weakens. There will always be times when there is either a sign of a flippening or floppening. Right now, Bitcoin’s dominance is slowly inching back to 50% and more. If Ethereum continues to lose value, that percentage may be reached a lot sooner than people think.
Ethereum users may not take all that kindly to the term “floppening.” Then again, Bitcoin users are not too happy about all of this flippening talk either. It is hard to please both crowds, but no one expected anything different. There will always be some “beef” between Ethereum and Bitcoin enthusiasts, even though both currencies are not competing with one another.