This week, the second-largest blockchain by market capitalization switched from the proof-of-work method of mining and processing transactions to the proof-of-stake model, claiming to cut the blockchain’s energy consumption by more than 99%.
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Ether makes demands on the sector
Ethereum builders hope a less energy-intensive blockchain will help them expand services and scale up as needed, with less resistance from regulators and environmentalists.
While a number of crypto traders were hoping for a rise in Ether’s price after the long-awaited change, in the first 24 hours after the merger, Ether fell by more than 8% to around $1,470.
Ethereum may be subject to greater scrutiny going forward. ONE The Wall Street Journal the report noted that US SEC Chairman Gary Gensler noted that proof-of-stake cryptocurrencies can be considered securities as investors often hope for profits while relying on the work of others. This could bring SEC attention to Ethereum if Ether’s price suddenly rises after the merger.
India enters the top five
Blockchain research platform Chainalysis’ 2022 Global Crypto Adoption Index placed India among the top countries in terms of crypto adoption. The pack was led by Vietnam, followed by the Philippines, Ukraine, India and the United States
Pakistan, Brazil, Thailand, Russia and China took the next five spots, according to Chainalysis’ report, which observed that emerging markets occupy most of the top spots on the index.
Both Ukraine and Russia have been asking for crypto donations since Russia invaded the country in February 2022.
When warriors unite
Traditional financial giants have come together to launch a new digital asset exchange called EDX Markets. The exchange is aimed at US private individuals 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 in due course. The technical infrastructure will be provided by market operator MEMX.
“Customer safety and regulatory compliance are also fundamental founding principles of EDXM,” a press release reported 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 to comply with regulations.
