# Cryptoverse: Ether snaps at bitcoin’s heels in race for crypto crown Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-13 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Ethereum Creeps Up on Bitcoin Amid Big 'Merge' Meta Description: Discover how ether is closing the gap on bitcoin dominance with the upcoming Merge upgrade. Is the 'flippening' near? Find out here! URL: https://financedigest.com/cryptoverse-ether-snaps-at-bitcoins-heels-in-race-for-crypto-crownhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-13t053201z2lynxmpei8c06irtroptp4fintech-cryptocurrency-1736815230072-compressed.jpg) By Medha Singh and Lisa Pauline Mattackal (Reuters) – For years, ether could barely dream of challenging its big brother bitcoin. Now, its ambitions may be becoming more realistic. The second-biggest cryptocurrency is taking market share from bitcoin ahead of an all-important “Merge” software [upgrade that could sharply reduce the energy usage of its Ethereum](https://www.financedigest.com/cryptoverse-ethereum-upgrade-to-unlock-33-billion.html "Cryptoverse: Ethereum upgrade to unlock billion") blockchain, should the developers pull it off in coming days. Bitcoin’s dominance, or its share of the crypto market’s market value, has slipped to 39.1% from this year’s peak of 47.5% in mid-June, according to [data platform](https://www.financedigest.com/mercedes-benz-and-microsoft-collaborate-on-supply-chain-data-platform.html "Mercedes-Benz and Microsoft collaborate on supply chain data platform") CoinMarketCap. Ether, on the other hand, has climbed to 20.5% from 16%. The upstart is still a long [way from overtaking bitcoin](https://www.financedigest.com/five-ways-to-make-money-trading-bitcoin.html "Five Ways to Make Money Trading Bitcoin") as the No.1 cryptocurrency, a reversal known to aficionados as “the flippening. It’s made up ground, though; in January 2021, bitcoin reigned supreme at 72%, while ether occupied a slender 10%. As for price, one ether is now worth 0.082 bitcoin, [near December 2021 highs and sharply above the 2022 low](https://www.financedigest.com/oil-prices-ease-to-trade-near-2-month-lows-on-china-demand-fears-dollar-strength.html "Oil prices ease to trade near 2-month lows on China demand fears, dollar strength") of 0.049 in June. People are now viewing Ethereum as essentially a safe asset because they’ve seen the success of the network, they think it’s not going anywhere,” said Joseph Edwards, [head of financial](https://www.financedigest.com/the-hidden-financial-woes-of-international-students-heading-for-the-uk.html "The Hidden Financial Woes of International Students Heading for the UK") strategy at fund management firm Solrise Finance. “There’s a permanency to how Ethereum is perceived in the crypto ecosystem.” Bitcoin dominance wanes https://graphics.reuters.com/FINTECH-CRYPTO/WEEKLY/zdvxomazgpx/chart.png CAPRICIOUS CRYPTO The Merge, [expected to take place](https://www.financedigest.com/revealed-the-top-5-places-brits-expect-to-find-the-one-in-2016.html "REVEALED: THE TOP 5 PLACES BRITS EXPECT TO FIND ‘THE ONE’ IN 2016") on Thursday after several delays, could lead to wider use of the blockchain, potentially boosting ether’s price – although nothing is certain in a capricious crypto market. Ethereum forms the backbone of much of the “Web3” vision of an internet where crypto takes centre stage, powering applications involving crypto offshoots such as decentralised [finance and non-fungible tokens – although this much-hyped dream](https://www.financedigest.com/6-ways-to-finance-your-dream-vacation.html "6 Ways to Finance Your Dream Vacation") is still unrealised. Bitcoin and ether have both nearly halved this year on concerns about supersized interest [rate hikes](https://www.financedigest.com/uk-economys-unexpected-bounce-spurs-more-boe-rate-hike-talk.html "UK economy’s unexpected bounce spurs more BoE rate hike talk") from central banks. Nonetheless, investors seem to like the look of the Merge, with ether up over 65% [since the end of June](https://www.financedigest.com/ukraine-war-energy-crisis-send-german-business-sentiment-to-lowest-level-since-june-2020.html "Ukraine war, energy crisis send German business sentiment to lowest level since June 2020"). Bitcoin has barely budged in the same period. We’re going to see (ether’s) [attractiveness to some investors](https://www.financedigest.com/5-ways-that-start-ups-can-attract-investors.html "5 Ways That Start-Ups Can Attract Investors") who are concerned about energy consumption,” said Doug Schwenk, CEO of Digital Asset Research, although he cautioned that ether was still a long way behind bitcoin. THE KING IS STRONG The diminishing bitcoin dominance in crypto’s current bear market is a departure from previous market cycles when [investors](https://www.financedigest.com/cryptoverse-bitcoin-investors-take-control.html "Cryptoverse: Bitcoin investors take control") sold lesser tokens – “altcoins” – in favor of the more liquid and reliable bitcoin. Dethroning the king is no easy feat, though. [Bitcoin is still by far the most well-known cryptocurrency](https://www.financedigest.com/devere-officially-launches-cryptocurrency-app-with-bold-bitcoin-predictions.html "deVere officially launches cryptocurrency app with bold Bitcoin predictions"). Mainstream [investors who have dipped](https://www.financedigest.com/oil-steadies-after-dipping-on-china-outlook-investors-await-fed-clues.html "Oil steadies after dipping on China outlook; investors await Fed clues") their toes in the crypto market since 2020 have tended to turn first to bitcoin, as the most liquid and widely-traded token. Its market cap of $427 billion is still more than double Ether’s $210 billion, and market participants firmly believe the original digital coin remains the gold standard in [crypto due to its limited](https://www.financedigest.com/natwest-limits-customers-crypto-transfers-citing-scam-concerns.html "NatWest limits customers’ crypto transfers, citing scam concerns") supply. Some market players [say bitcoin’s grip on the crypto](https://www.financedigest.com/crypto-firms-will-develop-offshore-without-clear-us-rules-coinbase-chief-says.html "Crypto firms will develop ‘offshore’ without clear US rules, Coinbase chief says") crown is still strong, even if it has to accept other contenders. For example, Hugo Xavier, [CEO of K2 Trading Partners](https://www.financedigest.com/exclusive-crypto-giant-binance-moved-400-million-from-u-s-partner-to-firm-managed-by-ceo-zhao.html "Exclusive-Crypto giant Binance moved 0 million from U.S. partner to firm managed by CEO Zhao"), said its dominance could improve to 50%-60% range if the crypto market turns bullish but it is unlikely to touch 70% again. (Reporting by Medha Singh and Lisa Pauline Mattackal in Bengaluru; Editing by Tom Wilson and Pravin Char) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---