The enormous energy consumption for operations, specifically by cryptocurrencies such as Bitcoin (BTC), has led to strong criticism due to their significant carbon footprint. These allegations are overstated; however, certain cryptocurrencies not only do not consume excessive energy but are also eco-friendly.
Therefore, if you are considering investing in environmentally sustainable options, let’s examine why Algorand, Solana, and Cardano might be included in your list of the top eco-friendly alternative coins to invest in.
1. Algorand (ALGO)
Algorand revealed its status as a carbon-negative blockchain on Earth Day 2022 by darkening nearly 20 green billboards it had bought in Times Square. Even prior to this event, its carbon footprint had been minimal due to its utilization of the Pure Proof-of-Stake (PPoS) model for transaction validation.
Algorand achieved carbon negativity by implementing a smart contract that automatically compensates for each transaction’s carbon footprint without requiring user intervention. In addition, it claims to allocate a portion of its network fees to the purchase of carbon credits through ClimateTrade.
The current trading price of ALGO is $0.1371. According to the moving averages, a strong sell is indicated. The prevailing trend is bearish, as the current price is below the 200-day Exponential Moving Average (EMA).
2. Solana (SOL)
Solana is famous for its speed and efficiency. It consistently processes over 2,000 transactions per second and has been reported to handle up to 65,000. The average transaction fee is only $0.00025.
Similar to many other environmentally friendly cryptocurrencies, Solana (SOL) utilizes Proof-of-History (PoH), which is a variation of the Proof-of-Stake model. This enables rapid validations without requiring substantial energy consumption. The proof system is chronological, ensuring transaction sequence without the back-and-forth characteristic of other ecosystems or consensus mechanisms.
Solana’s remarkable processing speed is attributed to its hybrid protocol. A single SOL transaction consumes approximately 719 kilojoules (kJ), which is less than the energy required for a Google search. Its price is predicted to increase due to the SOL ETF excitement.
3. Cardano (ADA)
Cardano is one of the most well-known environmentally friendly alternative cryptocurrencies. It offers a programmable ecosystem tailored to address real-world issues. Millions of students in Ethiopian public schools now store their students’ data on the Cardano blockchain.
The ecosystem selects validators based on their staked ADA tokens, significantly reducing energy consumption without compromising decentralization or security. In fact, Cardano is 47,200 times more energy-efficient than Bitcoin. The Cardano Foundation carried out a reforestation project, leading to the planting of over one million trees.
At present, ADA is experiencing a bearish trend with a value of $0.391. It shows a sell signal, as it trades below the 200-day EMA and is only $0.05 away from the death cross. However, holding for the long term might be worth it.
