Ethereum Is Flipping Bitcoin Now Says Celsius Network CEO

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Ethereum's EIP-1559 Upgrade Now Deployed on All Testnets
Ethereum's EIP-1559 Upgrade Now Deployed on All Testnets

Celsius Network CEO Alex Mashinsky said in an interview with Kitco News on Monday, July 5th, that Ethereum is very likely to flip Bitcoin in market capitalization. The CEO of Celsius Networks stated that among the top 1 million, the Ethereum flip has already taken place.

Ethereum (ETH) Overtake Bitcoin (BTC) in Total Holdings on the Celsius Network

He added that Ethereum (ETH) has overtaken Bitcoin (BTC) in total holdings by the Celsius community in US dollars. In addition, he expects the market to follow this trend over the next year or two.

Celsius Networks is an integrated banking and financial services platform that manages more than $17 million in customer deposits. Mashinsky stated that the largest dollar-denominated token currently held at Celsius is Ethereum. This clearly shows that the adoption of Ethereum by cryptocurrency investors is increasing.

Last week Ethereum reached an important milestone. For the first time in history, Ethereum’s address activity outperformed Bitcoin.

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Ethereum’s Address Activity & Deposits. Source: Santiment

Bitcoin’s market value is $650 billion, which is currently 2.5 times the size of the Ethereum market. Kitco’s newscaster David Lin also asked if Ethereum can outperform BTC by its market value. In this regard, Masiski said:

“The use case of Bitcoin is store-of-value and the use case for Ethereum is yield. Yield as an application has a broader user base as there are more people in the world who are vying for yield. Over time you will see a broader adoption for Etheruem than of Bitcoin.”

Ethereum 2.0 – Solving Technical Problems

Mashinsky also spoke about the latest developments in Ethereum 2.0, pointing out that Celsius Network has always played an important role in it. Celsius Networks put 25.00 ETH coins into the project.

He also spoke about the Layer 2 solutions launched on Ethereum such as MATIC, which have helped cut gas bills by 90%. However, he indicated that Ethereum 2.0 will bring incremental improvements in the overall performance of the network.

In addition, Mashinsky spoke extensively in the interview about his views on the threat posed by quantum computers. Concerns that quantum computing could disrupt blockchain networks has raised some concerns. Mashinsky indicated that he believes this will not happen in the next ten years. He added that old blockchain networks like Bitcoin and Ethereum are more resilient to quantum attacks.

BTC price and BTC Hashrate

Speaking on the most debated topic, Masinsky said China was partly responsible for the recent drop in the BTC hash rate. The runoff from Chinese miners has forced them to liquidate to cover the cost.

Celsius Networks CEO stated that short-sellers and traders took full advantage of the bad news. They liquidated a large part of their holdings. On the plus side, he added that China’s tough crackdown had helped decentralize control of bitcoin mining. Mashinsky added that Celsius Network has invested more than $200 million in BTC mining in the United States. It plans further investments to make the company the largest bitcoin miner in North America.

Regarding the development of CBDC, the CEO said China’s digital renminbi is more focused to reduce dependence on the US dollar. He believes that, unlike China, the United States will still win in the CBDC market because it has room to encourage innovation.