According to a 10X Research report the Tornado Cash ruling is advantageous for Ethereum and DeFi

Despite the fact that the market capitalization of decentralized finance has increased by 8.2% on the day, the group of privacy tokens has since diminished.

The judgment on Tornado Cash by the Fifth Circuit Court on Wednesday has sparked widespread optimism, resulting in substantial gains for privacy-focused tokens and decentralized protocols on Ethereum.

In a note to investors on Wednesday, 10X Research stated that the ruling does not endorsing money laundering, but it does establish a precedent that permits programmers to develop and release smart contract protocols without fear of sanction, provided that they do not charge fees.

The move could also offer developers greater clarity regarding the types of applications they can develop without attracting regulatory attention, particularly on Ethereum, which is the platform that hosts the majority of decentralized applications.

TORN, Tornado Cash’s native token, experienced a surge of over 380% in the early hours of Thursday, as the news immediately inspired the crypto markets.

According to data from CoinGecko, decentralized finance’s market cap has increased by 8.2% and an additional 21.5% on the week, while privacy coins as a category have since tapered off to less than 2% in total gains over the past 24 hours.

Uniswap (UNI) is one of the most significant gainers, rising 11% on the day to a high of just over $12.50, which is the highest it has reached in eight months. Ethena (ENA) and Aave (AAVE) have also made significant progress, with a 23% and 8.6% increase, respectively, reaching their greatest levels in five months and 2.5 years.

“This decision is advantageous for the Ethereum network and other protocols, as Ethereum continues to be the foremost blockchain for DeFi. This has the potential to have far-reaching consequences,” 10X Research stated.

Meanwhile, Alexey Pertsev, the Tornado Cash developer who was convicted of money laundering by a Dutch court in May, continues to be confined.

Pertsev issued a statement on Twitter last week that expressed his regret at the court’s decision to extend his pre-trial detention, despite their best efforts. “This decision has substantially impeded my capacity to prepare for the appeal; however, I am resolute in my pursuit of justice.”

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