Will Hedera’s eco-friendly policies create strong demand for HBAR
- The average energy consumed per transaction for Hedera was 33k times less than Ethereum.
- Hedera purchases carbon offsets on a quarterly basis.
Over the years, cryptocurrencies have grown remarkably to become one of the most coveted asset classes in the global market. However, with the rise, they have increasingly been on the radar for their carbon footprints.
The estimated annualized electricity usage of Bitcoin [BTC] is 136 terawatt-hours (TWh), which is greater than the annual electricity consumption of nations like Pakistan and Ukraine combined.
Ethereum’s [ETH] transition, from the proof-of-work (PoW) to the proof-of-stake (PoS) algorithm last year, was a step in addressing the growing concerns around greenhouse gas emissions.
However, over the years, the Hedera [HBAR] Hashgraph, has grown in popularity because of its eco-friendly measures.
Read Hedera’s [HBAR] Price Prediction 2023-24
Hedera goes ‘green’
A recent study by the University College London (UCL) Centre for blockchain technologies, found Hedera to be the most sustainable public chain when compared to other leading players.
The average energy consumed per transaction for Hedera was just 0.000003 kWh, almost 33k times less than Ethereum.
When we say @Hedera is a green chain, it means we're actively scaling the energy and #ESG markets 🌍
But just in case you care about #Hedera's environmental footprint compared to other leading chains like $SOL, $AVAX, $ALGO, $ADA, $DOT, and $ETH – here's some data from @UCL 👇 pic.twitter.com/nm5chiDc3Z
— HBAR Foundation (@HBAR_foundation) April 17, 2023
In March 2022, it established a $100 million fund for sustainable business ventures with the intention of investing in projects based on Hedera that deal with carbon emissions, offsets, and removals.
Moreover, an open-source solution called Guardian was developed by the HBAR foundation, which provides auditable, traceable, and reproducible records that document the emission process and lifecycle of carbon credits.
🌍 Happy #EarthWeek to all!
A top priority of #Hedera – as the most #sustainable #DLT – is to provide a decentralized foundation upon which the carbon balance sheet of the planet can be brought to the #blockchain.
🌐 Explore the Guardian @env_blockchainhttps://t.co/Qp1yRGQduG
— Hedera (@hedera) April 17, 2023
In addition to this, Hedera purchases carbon offsets on a quarterly basis. As per the latest figures from Q1 2023, the network’s emissions in Q4 2022 were 26 metric tonnes of CO2. Hedera purchased offsets for 26 metric tonnes of CO2 to offset network emissions in Q1 2023.
When a polluting corporation purchases a carbon credit to make up for the greenhouse gas it has emitted, it’s known as a carbon offset. The funds should be then used to support global efforts to remove an equivalent amount of carbon from the atmosphere.
Realistic or not, here’s HBAR market cap in BTC terms
State of HBAR
Hedera’s unique green policies fueled demand for the native coin, HBAR. According to CoinMarketCap, HBAR exchanged hands at $0.0683 at press time, logging a 24-hour gain of 1.50%, and a monthly increase of over 8%.
HBAR generated steady demand in the futures markets. The Open Interest (OI), or the dollar value locked in active contracts rose 3.5% to $16.85 million in the last 24 hours.
Over the last week, the OI has moved sideways, in tandem with the price action, per Coinglass.
Most of the investors were positioned for price gains as funding rates across most exchanges were positive.