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While many cryptocurrency traders were hoping for a surge in the price of Ether after the long-awaited change, the first 24 hours after the merger saw Ether fall by more than 8% to around $1,470.
This week, the second-largest blockchain by market capitalization switched from a proof-of-work method of mining and processing transactions to a proof-of-stake model, which it claims will reduce the blockchain’s energy consumption by more than 99%.
Ether stakes its claim on the sector
Ethereum’s creators hope that a less energy-intensive blockchain will help them expand services and expand them as needed, with less resistance from regulators and environmentalists.
While a number of cryptocurrency traders were hoping for a surge in the price of Ether after the long-awaited change, the first 24 hours after the merger saw Ether fall by more than 8% to around $1,470.
Ethereum may face more scrutiny in the future. A Wall Street Journal report said US SEC Chairman Gary Gensler noted that proof-of-stake cryptocurrencies could be considered securities because investors often hope for a profit while relying on the work of others. This could bring the SEC’s attention to Ethereum if the price of Ethereum suddenly rises after the merger.
India enters the top five
Blockchain research platform Chainalysis 2022 Global Crypto Adoption Index ranked India among the top countries in terms of cryptocurrency adoption. Vietnam led the pack, followed by the Philippines, Ukraine, India and the USA.
Pakistan, Brazil, Thailand, Russia and China took the other five slots, according to a report by Chainalysis, which found emerging markets occupy most of the top spots in the index.
Both Ukraine and Russia have been asking for cryptocurrency donations since Russia entered the country in February 2022.
When giants unite
Traditional financial giants have teamed up to launch a new digital asset exchange called EDX Markets. The exchange caters to American retail and institutional investors.
EDX Markets is backed by Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital and Virtu Financial. More partners are expected over time. The MEMX market operator will provide the technical infrastructure.
“Customer safety and compliance are also core founding principles of EDXM,” a news release said Tuesday.
The CEO of EDX Markets is Jamil Nazarali, who was previously Global Head of Business Development at Citadel Securities.
While much of the crypto community prefers to trade on decentralized exchanges with fewer regulations, institutional investors often feel safer trading on exchanges backed by well-known venture capitalists who promise compliance.