Ethereum is starting to eat Bitcoin’s lunch – is this the start of the ‘flippening’?
Over the past week, Ethereum’s price has plummeted by nearly 8%.
- Ethereum’s total market capitalization now stands at $490 billion, which is nearly 54% of Bitcoin’s net total value of around $903 billion.
- Silk Road’s alleged co-founder Ross Ulbricht has raised a sizeable $6.2 million via his first-ever non-fungible token (NFT) offering.
- A new study shows that a single Ethereum transaction may be equivalent to the daily power needs of the average US household.
Even after maintaining positive price action amidst a marketwide sell-off recently, Ethereum (ETH) has registered losses in excess of 5% over the last 24 hours. At press time, ETH is trading at a price point of $4,091.
For two months, ETH has severely outperformed Bitcoin (BTC). The ETH/BTC pair has rallied by over 230% over the course of the year — all while hitting a new all-time high of 0.089 BTC on December 9.
On a more technical note, Ethereum’s current market cap of $490 billion now stands at 54% of Bitcoin’s total valuation of $903 billion. This ratio stood at just 15% at the end of 2020, suggesting that a “flippening” of sorts has definitely taken place.
Derivatives data available online shows that Ethereum could be in for more positive price action in the near future, especially with the altcoin showcasing a higher “futures basis rate” despite the asset being down more than 15% from its all-time high of around $4,865.
Ethereum’s energy consumption continues to raise eyebrows
As per research data available online, the Ethereum network in its current iteration continues to be quite power-intensive, with the platform using more energy than the entire nation of Costa Rica annually. In fact, a single ETH transaction requires around 30 kilowatt-hours, which is enough to power the average American household for a day.
To put it another way, the study notes that 100 ETH transactions are enough to fuel a Tesla Model 3 for a total running distance of approximately 400 kilometers. That said, once the Ethereum ecosystem makes its long-awaited switch to its proof-of-stake-based ETH2.0 framework, these metrics may reduce quite substantially.
Silk Road alleged founder raises millions via his debut NFT
Ross Ulbricht, the alleged founder and owner of the now-defunct dark web marketplace Silk Road, has auctioned off his first-ever non-fungible token (NFT) for a whopping $6.2 million or 1,446 ETH approximately. A platform called SuperRare facilitated the auction at the Art Basel Miami showcase.
FreeRossDAO, a decentralized autonomous organization, made the purchase primarily to help raise funds for Ulbricht’s mounting legal expenses as well as help “advance prison reforms” globally. Thus, it will be interesting to see how things continue to play out for Ross from here on out.
Disclosure: The author owns a range of cryptocurrencies at the time of writing