Ethereum and Cardano fit the bill in terms of environmental consciousness
Key points:
-
The EU has come up with crypto regulations, and one of the critical areas of focus is the environmental metrics of cryptocurrencies.
-
Cardano and Ethereum are among the cryptocurrencies that perfectly align with these regulations.
-
Aside from compliance with regulations, these two cryptocurrencies are growing in real-world adoption.
Recently, the European Union developed a raft of regulations to bring sanity to the crypto market. The regulations also give an idea of how cryptocurrency regulations could go globally. They also offer an idea of the best cryptocurrencies to buy going into the future.
One of the critical aspects of the regulations is that cryptocurrencies will be required to declare their carbon footprint. This is an indicator that going forward; the EU will be more pro-environmentally friendly cryptos.
From an investor perspective, this is also a pointer to the type of cryptocurrencies that are likely to find more favor with investors going forward. Below are the top-ranking cryptocurrencies to keep an eye on after the EU regulations.
Cardano
One of the key reasons why Cardano (ADA) became a thing in the first place is to deal with the environmental costs of Proof-of-Work cryptocurrencies like Bitcoin and Ethereum. As such, it is perfectly in line with the new EU regulations. That said, Cardano is a lot more than just environmentally-friendly crypto.
Cardano also happens to be one of the most technologically advanced cryptocurrencies. Its Ouroboros Proof-of-Stake algorithm is one of the best because it strikes a perfect balance between security, decentralization, and scalability.
On top of that, Cardano has gained significantly in adoption. For instance, in places like Ethiopia and Rwanda, the Cardano blockchain is already being used to streamline government systems. Since it is in the developing world that such systems are needed the most, Cardano is on the right track to adoption and value growth.
That’s why it stands out as the top crypto to watch now, even as the crypto bear market persists.
Ethereum
For years, Ethereum (ETH) has been bad for the environment since it uses a Proof-of-Work algorithm. However, since 2020, it has been transitioning to Proof-of-Stake, in what’s popularly known as Ethereum 2.0.
Ethereum has made significant strides on this front, and a testnet merge of Ethereum and Ethereum 2.0 is complete. It is widely expected that in a month or so, Ethereum will be running as Ethereum 2.0 and use only a tiny percentage of the energy it was using when running as Proof-of-Work.
Besides being in line with the new EU guidelines, there are many other reasons why Ethereum looks attractive as an investment. One of them is security. In the altcoins market, Ethereum is easily the most secure and decentralized. After the events of the last few months, where some cryptos have collapsed, Ethereum’s security is likely to see it attract more investors in the EU and outside.