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The value of Ethereum for the first time since May rose above $ 2,000 due to news about its upcoming transition to the Proof-of-Stake consensus mechanism
Many traders believe that the demand for the Ethereum cryptocurrency has increased recently. They are based on the fact of an increase in the number of registrations of ENS (Ethereum Name Service) – a decentralized open source protocol. The protocol is a domain name system and naming standard on the Ethereum blockchain.
Each domain name registered with ENS is an NFT. This scheme simplifies control over the domain and makes it easy to verify ownership of it.
Sanctions on Tornado Cash
The decline in the value of Ethereum may also be caused by news about the sanctions of the Us Office of Foreign Assets Control (OFAC) against Tornado Cash. Such actions by the government have raised fears that the crypto industry will become the next victim of censorship and centralization.
According to some market participants, 66% of Beacon Chain Ethereum validators will have to obey regulators if they require it.
However, Coinbase CEO Brian Armstrong said that the company will suspend the provision of staking services if regulators require it to censor transactions.
But it is unlikely that the sanctions were the only reason for the fall in the value of Ethereum over the past 7 days.
Cryptocurrencies lost profits
Over the past 7 days, the capitalization of the cryptocurrency market has fallen sharply. According to Coingecko, bitcoin has lost about 13% of its value over the past week.
Other major cryptocurrencies such as Polkadot, Solana, Cardano, Ethereum Classic, Avalanche, and Polygon have fallen sharply over the same period.
However, there have been some signs of recovery over the past 24 hours. The total capitalization of the crypto market grew by 0.3%, and the trading volume exceeded $ 76 billion
But Ethereum has yet to fully recover. At the time of publication of the article, it is trading at $ 1538, while over the past 24 hours its value has decreased by 3.6%.
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