U.Today – Nick Tomaino, the CEO of cryptocurrency investment firm 1confirmation, has made a bold prediction about the market. Tomaino believes that (ETH) could eventually overtake (BTC), a phenomenon often referred to as “flipping.”
In its recent Q2 2024 LP letter shared by Tomaino, 1confirmation lays out its strongest crypto theses today, which include Ethereum challenging Bitcoin’s market reign.
The CEO of 1confirmation predicts that Ethereum's market cap will surpass Bitcoin's within the next five years. Today, BTC's market cap (over $1.2 trillion) is almost four times the market cap of ETH ($321 billion). However, he believes that both will continue to grow, but that ETH will eventually surpass BTC. Tomaino explains the reasoning behind his market prediction.
According to Tomaino, BTC has a clear narrative (digital gold) that institutions have already accepted. While Ethereum has been the most impactful blockchain in the crypto space over the past five years, ETH is still poorly understood. He went on to say that Ethereum is the chain that talented developers are building the decentralized internet on and ETH is the digital oil that powers it.
Tomaino believes ETH is scarce, profitable, and useful, and since its market cap is now significantly smaller than BTC's, Wall Street can own more of it, allowing it to aggressively promote the ETH narrative to the world in the years to come.
Ethereum and BTC Price Action
At the time of writing, ETH was up 3.96% over the past 24 hours to $2,774. Bitcoin was posting bigger gains, up 3.94% over the same period to $64,308.
BTC finally got the recovery the market had been waiting for, with Federal Reserve Chair Jerome Powell’s recent speech at Jackson Hole serving as the catalyst it needed to break out of the $58,000 to $62,000 range. Rate cuts seem confirmed for September, but there was no indication of how much, so August payrolls will be pivotal.
On the other hand, the Ethereum spot ETF saw a total net outflow of $5.6976 billion on August 23 and continued this net outflow for seven consecutive days. Grayscale’s ETHE ETF saw an outflow of $9.7656 billion and VanEck’s ETHV ETF saw an inflow of $2.0063 billion. The total net asset value of the Ethereum spot ETF is $7.652 billion.
Ethereum ETFs officially began trading in the US in July, placing ETH in a vehicle favored by many professional investors and advisors.
This article was originally published on U.Today
