Flippening - what is it in cryptocurrency?

Flippening is a term used as an indicator of the change in the capitalization of one asset compared to another.

As the cryptocurrency market develops, more and more new phenomena appear that require explanation. One of them is Flippening, which initially designated the moment when the capitalization of Ethereum's second most popular cryptocurrency will be greater than the first and most popular cryptocurrency, Bitcoin. However, this concept has expanded over time and begun to include several additional assessment parameters. These include indicators such as transaction volume, trading volume, number of nodes, etc. Against the backdrop of the emergence of more and more new types of cryptocurrencies, this concept eventually began to be applied not only to the Bitcoin/Ether pair but also to any other cryptocurrency pairs and assets:

  • token shares and token coins;
  • ASIC and GPU miners;
  • altcoins and bitcoins.

Even special services were eventually created to assess flipping, providing comparative statistics with filters based on key indicators.

Based on current data from one of these services, ether has already overtaken Bitcoin. Thus, the original concept of flipping is no longer used but only in a more advanced tool for quantitatively comparing different assets.