Eco Cryptocurrency: What's the "Greenest" Crypto?

The energy crisis is the concern of the recent years that the world’s demands on the limited natural resources. As a result, forward-thinking investors are looking at the impact of their investments on the environment now. This trend also touches upon the cryptocurrency world. As the crypto market continues to grow rapidly, the energy requirements are soaring along with it. This has prompted a shift towards more eco-friendly cryptocurrencies. 

In this article, we'll explore why sustainability matters in crypto investing, how to evaluate the eco-friendliness of crypto, and what is the most eco-friendly cryptocurrency in the market.

Why Eco-Friendliness Matters in Cryptocurrency?

The environmental impact of cryptocurrency mining has been a topic of concern for many crypto enthusiasts. Cryptocurrencies such as Bitcoin rely on the Proof-of-Work (PoW) consensus mechanism, which requires miners to calculate complex mathematical equations to authenticate transactions. This process consumes a massive amount of energy, contributing significantly to greenhouse gas emissions. To put this into perspective, Bitcoin mining alone consumes more energy annually than in some small countries. 

mining of bitcoin

Eco-friendly crypto, however, rely on alternative consensus mechanisms that require significantly less energy or use renewable energy sources to power their operations. By investing in such crypto assets, people can reduce their carbon footprint while still trading digital assets.

Evaluating the Eco-Friendliness of Crypto Tokens

Now that we understand why eco-friendliness matters in cryptocurrency investing, let's explore the factors to consider when determining the environmental impact of a crypto token. 

The Watt-hour per transaction (Wh/Tx) metric is a good indicator of how energy-efficient a particular cryptocurrency is. This metric measures the energy consumed per transaction. Another important factor is the consensus mechanism. Proof-of-Stake (PoS) and Proof-of-Space-and-Time (PoST) mechanisms are alternatives to PoW, which consume much less energy. Furthermore, the total annual electricity usage of a cryptocurrency is also an important criterion to consider when evaluating its ecological footprint.

Green Cryptocurrencies to Watch

Several cryptocurrencies are exploring eco-friendly alternatives. For example, Chia Network operates on a PoST mechanism and uses SSD hard drives that consume significantly less energy than traditional hard drives. Likewise, Power Ledger utilizes blockchain technology to enable sharing of renewable energy, thereby reducing carbon emissions and promoting sustainable energy use. Moreover, organizations such as the Cryptocurrency and the Environment Foundation (CEF) and the Clean Energy Blockchain Network (CEBN) are focusing on developing ways to reduce energy consumption in the crypto ecosystem.

1. Ecoterra

Ecoterra is the best eco crypto coin that offers rewards for recycling. The platform is designed to inspire climate action and provide tangible solutions to some of the world’s most pressing ecological problems. The large ecosystem rewards users for environmental actions and makes it easy for businesses to contribute to the cause. Hold these tokens for value appreciation, stake them for attractive APY, or use them for ecological activities like beach cleanups, tree planting, classes on their online platform, or support green energy projects globally. 

2. Chia (XCH)

Chia's green approach has been making waves. Designed as an environmentally-friendly alternative to mainstream options like Bitcoin and Ethereum, Chia uses an innovative 'Proof-of-Space-and-Time' mechanism that relies on network participants' free hard drive space to validate new blocks on the network. As a result, Chia is positioned as a strong long-term investment, with its native token, XCH, experiencing multiple bull runs since its inception. 

3. Ethereum (ETH)

Ethereum’s reputation as the top choice for dApp developers is well-deserved, as its smart contract-enabled blockchain has the ability to cater to a range of niches. DeFi and NFTs are just two examples of the kinds of applications that can be created on Ethereum’s platform. However, its growth was previously hindered by its PoW consensus mechanism, which prompted other blockchains to take the lead. Fortunately, with its transition to a PoS consensus mechanism, Ethereum has significantly reduced its carbon footprint, making it a top contender for the title of “best green cryptocurrency”. Not only does this transition benefit the environment, but it also makes becoming a validator more accessible and encourages others to follow in Ethereum’s footsteps.

4. Solana (SOL)

If you're on the lookout for environmentally-friendly cryptocurrencies, Solana is undoubtedly a name to add to your list. As one of the top trending cryptos of 2021, Solana is known for its high scalability level, as evidenced by its ability to handle up to 65,000 transactions per second. Its hybrid consensus model, which combines PoS and PoH mechanisms, has enabled this feat and resulted in an impressively low energy requirement for each transaction. According to a recent energy use report from Solana, an average transaction on the network uses less energy than just three Google searches!

5. Avalanche (AVAX)

With its innovative multi-chain approach, Avalanche can handle an impressive 4,500 transactions per second, making it an enticing option for dApp developers operating in high-growth niches. What's more, its Avalanche Bridge feature is a nifty tool that allows developers to port their creations to Avalanche with ease. Another strong selling point of Avalanche is its eco-friendliness. According to a recent report, Avalanche consumes only 0.0005% of the energy used by Bitcoin. Avalanche outperforms other green crypto-mining alternatives such as Solana and Cardano.

6. Tezos (XTZ)

Tezos is paving the way for green energy in the crypto world with its minimal carbon footprint. This blockchain offers the ability to support smart contracts and mint NFTs, similar to Ethereum, but sets itself apart through decentralization. Rather than relying on a central authority, Tezos gives its XTZ holders the power to vote on potential upgrades, making it a truly democratic process. With a yearly carbon footprint equivalent to only 17 global citizens, Tezos has proven to be a truly green cryptocurrency that prioritizes sustainability. 

7. Polkadot (DOT)

Polkadot stands out as a blockchain platform that values interoperability over just its own growth. Its unique approach involves using 'parachains' that connect to a central ‘relay chain’ to allow for information sharing. This means more attention can be directed towards dApp creation, as developers do not need to worry about validating transactions. Among the six leading PoS chains, Polkadot had the lowest carbon emissions. As DOT holders have a say in governance issues, there’s room for further eco-friendly upgrades.

8. Flow (FLOW)

As one of the newest additions to the green cryptocurrency industry, Flow is quickly becoming a popular choice for NFT creators. One of the reasons why Flow stands out is its energy efficiency – the network only uses 0.18 GWh of energy annually and has been independently verified by Deloitte. For artists looking to enter the NFT market, Flow offers an affordable option with minimal energy expenditure, minting one NFT using a fraction of the energy used in posting on Instagram. This makes Flow a competitive and eco-friendly blockchain for creators looking to maximize their profits while minimizing their environmental impact.

9. Algorand (ALGO)

Algorand's approach to consensus mechanism has earned it a reputation as one of the greenest crypto projects in the blockchain sector. Its Pure 'Proof-of-Stake' protocol ensures that a validator's influence is determined not just by the amount of ALGO tokens they hold but by all participants in the network. This approach makes the network entirely carbon-neutral, with the team making an effort to promote its blockchain to eco-friendly organizations such as PlanetWatch and Global Carbon Holding. Notably, Algorand has partnered with ClimateTrade to ensure that emissions data is as accurate and transparent as possible. Founder Silvio Micali's commitment to minimizing the network's carbon footprint makes Algorand an attractive option for ESG-focused investors.

10. Polygon (MATIC)

As the demand for blockchain technology grows, so does the need for scalability and affordability. This is where Polygon comes in. Polygon, a carbon-negative Layer-2 blockchain, has caught the attention of many due to its scalability services. By working alongside Ethereum, Polygon has helped to improve transaction speeds and lower network fees. With its PoS consensus mechanism, dApps can process transactions through the Polygon network, which can handle up to 65,000 TPS. 

How to Identify Green Cryptocurrencies?

Now that we understand the importance of eco-friendliness in the cryptocurrency world, let's look at ways to identify sustainable cryptocurrency projects. Firstly, keeping up with current environmental topics and trends is crucial. Secondly, reviewing a project's whitepaper for sustainability plans should provide insight into the company's commitment to the environment. Thirdly, looking for eco-friendly partnerships and initiatives can also be a good indicator of a sustainable cryptocurrency.

Where to Buy Eco Cryptocurrencies?

  • Buy Eco Crypto via a Reputable Exchange

Various crypto exchanges such as Coinbase, Kraken, Binance, and OKX are offering to buy ETH, SOL and other green cryptocurrencies with a bank card.

It should be mentioned that the largest exchanges are often centralized and may restrict trading activities and lock your funds anytime. So exchanges definitely are not a go-to for your long-term holdings.

  • Buy Eco Crypto right from your Wallet

Many digital wallets today offer great functionality and have an in-built purchase option. It allows you to avoid fees for transferring funds into your wallet from exchanges and any additional friction in the buy-store journey.

Also in many wallets you can find such features:

  • Buy and sell option;
  • Asset statistics in Portfolio;
  • Full transaction history tabs;
  • Customizable commissions for sending coins.

See the example from Arctic Wallet down below.

Arctic Wallet
Source: Arctic Wallet App


As the cryptocurrency market continues to grow, it's essential to consider the environmental impact of the investments. The fast pace of technological advancement means there are many opportunities for green cryptocurrencies to innovate and find sustainable alternatives. By investing in such assets, we can contribute to reducing our carbon footprint while still participating in the rapidly evolving digital asset market.

Share Post