- The recent overturning of Tornado Cash sanctions has sparked significant excitement in the crypto industry.
- 10x Research has suggested that the ruling is particularly favorable for Ethereum.
- Some investors already appear to be taking note.
The weeks following the U.S. election have been filled with excitement for the crypto community, and the good times show no signs of coming to a halt just yet. Over the past 24 hours, a U.S. appeals court offered crypto community members yet another reason to be excited after ruling that sanctions on Tornado Cash were unlawful .
Industry leaders hail the ruling as a big win for the sector, and leading crypto market research firm 10x Research has suggested that it bodes particularly well for Ethereum .
A Boon for Ethereum?
The recent Tornado Cash ruling could have “enormous implications” for Ethereum.
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That’s according to leading crypto market research firm 10x Research. In a note to investors on Thursday, November 28, the firm argued that the ruling promised to embolden smart contract developers, which would boost DeFi and, therefore, Ethereum.
"As Ethereum remains the leading blockchain for DeFi, this decision is viewed positively for the broader DeFi ecosystem and other protocols, particularly on the Ethereum network. This could have enormous implications," the firm's founder Markus Thielen wrote.Meanwhile, as the founder of 10x Research highlighted, some investors may already be acting on speculations of the potential impact.
Ethereum Breaks Key Resistance
Over the past 24 hours following the ruling, Ethereum has enjoyed a significant rally, jumping by almost 12% from lows of about $3,300 to highs near $3,700, breezing past the critical $3,500 resistance level.
According to 10x Research’s Thielen, the momentum appeared linked to “a large buyer.” The analyst expressed this view by highlighting that the asset seemed to go up at a perfect 45% angle.
The analyst noted that smart traders have been pivoting to the asset since November 14, citing one wallet that has accumulated $60 million in ETH since then.
According to Thielen, with Ethereum only about 52% year-to-date (YTD) compared to about 127% for Bitcoin , traders see an opportunity, especially amid speculation of more favorable regulations under a Donald Trump -led administration, sentiments bolstered by the recent Tornado Cash ruling.
On the Flipside
- Legal experts have maintained that the ruling holds little weight in the criminal cases faced by Tornado Cash developers.
- The Tornado Cash case is ongoing, as it has only been reverted to the district court for reevaluation.
Why This Matters
With Ethereum sentiment in the dumps in recent months, the ecosystem needs as many positives as possible. The recent Tornado Cash sanctions ruling promises just such a boost.
Read this for more on the Tornado Cash Ruling:
Tornado Cash Sanctions Deemed Unlawful by Appeals Court in Major Crypto Win
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