In this article, we will tell you about 11 Most Sustainable Cryptocurrency Projects to Invest in 2022.
Cryptocurrencies are an investment opportunity, but they’re not for everyone. The market is volatile, consumer protections are limited and regulators aren’t clear what their role is going forward. The ultimate value of cryptocurrencies is inextricably tied to their ability to deliver material and scalable benefits for consumers, businesses, and governments. But that doesn’t mean it’s an easy or risk-free ride to get there.
The Bitcoin project popularized the positive impact that cryptocurrencies can have on industries worldwide, but there have been many concerns about their negative impact on the environment. In order to replicate BTC’s success while also providing investors with a ‘greener’ option, alternative projects have popped up.
In this guide, we look at the most sustainable cryptocurrency projects of 2022, dive into which cryptos are contributing the most to the environment, and present some valuable strategies for investors to identify sustainable coins.
Sustainable Cryptocurrency Projects to Watch in 2022
Despite the fact that hundreds of thousands of people worldwide continue to invest in Bitcoin, its ‘Proof-of-Work’ consensus protocol results in an enormous energy footprint. Cryptocurrencies have, fortunately, moved away from this approach to reduce energy consumption.
All 11 sustainable cryptos below aim to revolutionize the crypto market in an eco-friendly manner. A deeper exploration of their use cases and value potential will follow later in the article.
- IMPT – Cryptocurrency with the Most Sustainable Future in 2022
- Cardano (ADA) – 2022’s Top Sustainable Cryptocurrency
- Polygon (MATIC) – Leader in Layer-2 Blockchain with “Green Manifesto”
- Algorand (ALGO) – A blockchain network that is widely used to reduce carbon emissions
- Chia (XCH) – Crypto with a unique consensus mechanism that is most sustainable
- Solana (SOL) – 99% Energy Efficient Blockchain Network
- Nano (XNO) – An alternative to Bitcoin that is sustainable
- Hedera (HBAR) – A blockchain alternative that is eco-friendly
- SolarCoin (SLR) – A sustainable crypto that incentivizes solar energy
- Stellar (XLM) – A blockchain-based project aiming to revolutionize payments
- EOS (EOS) – Blockchain with sustainable technology that is ‘feeless’
The majority of cryptocurrency buyers buy for capital gains and do not consider the project’s environmental impact. Bitcoin is one of the prime examples of this because miners’ negative environmental impact has become a pressing issue in the market.
In spite of this, the most sustainable crypto projects reviewed below all provide appealing investment opportunities along with an environmentally friendly mission. These projects deserve a closer look, so let’s get started:
1. IMPT – Cryptocurrency with the Most Sustainable Future in 2022
As far as sustainability goes, IMPT is our top pick this year. Through IMPT, individuals and companies can offset their carbon footprints using blockchain technology. In addition to reducing CO2 emissions, IMPT also streamlines the process by partnering with over 10,000 well-known retail brands.
It’s essential to understand what ‘carbon credits’ are in order to understand why IMPT may become the most sustainable cryptocurrency. Individuals or companies can purchase carbon credits that allow them to pollute. Carbon credits equal one ton of carbon dioxide.
These credits are tradable, which makes them exciting. To demonstrate how this works, here’s an example:
- It is allowed for Company A and Company B to emit 20 tons of CO2 each year
- There is a trend for Company A to emit only 15 tons of CO2, whereas Company B is trending to emit 25 tons of CO2.
- It is possible for Company A to sell five carbon credits to Company B, allowing the latter to emit 25 tons, while the ‘net pollution’ remains the same.
The global carbon offset market is estimated to be worth billions of dollars, according to IMPT’s whitepaper. In addition, carbon credits are expected to become increasingly popular between now and 2035. As a result, the price estimates for these credits are likely to rise as well.
It is here where IMPT comes in, as the project seeks to simplify the murky and complex market for carbon credits. By simply shopping, as usual, individuals can acquire carbon credits through IMPT’s ecosystem built on the Polygon blockchain.
A percentage of IMPT’s revenue will be dedicated to eco-friendly projects through its partnership with 10,000+ brands. As a result, shoppers receive $IMPT – IMPT’s native ERC-20 token. On IMPT’s platform, shoppers can exchange their tokens for carbon credits once they have enough $IMPT.
Since these carbon credits are structured as NFTs, $IMPT is an eco-friendly altcoin. As a result, other individuals or companies can purchase them, allowing the holder to profit from fluctuations in their value.
Furthermore, holders of carbon credit NFTs can retire them if they wish. As a result, CO2 is ‘removed’ from the environment and rewarded to the owner as a unique digital artwork NFT that can be traded on the marketplace of the ecosystem.
Since all stakeholders have an IMPT score, IMPT even incorporates social networking concepts. Individuals and companies are awarded points based on their environmental impact, allowing you to see who is doing the most and who needs to improve.
IMPT is still in development, but the team is preparing to launch its presale phase on October 3rd. This phase offers 600 million $IMPT tokens for $0.018 each. Future phases and the public round will have higher prices, so this is the only opportunity to invest at this discounted price.
2. Cardano (ADA) – 2022’s Top Sustainable Cryptocurrency
Cardano is our pick for the most eco friendly crypto this year. To validate transactions, Cardano uses a ‘Proof-of-Stake’ (PoS) protocol. Bitcoin’s ‘Proof-of-Work’ protocol (PoW) contrasts with this.
According to an article by NBC, PoS blockchains are much more energy-efficient than their PoW counterparts. To verify transactions, they use ‘validators’ instead of mining, which consumes enormous amounts of energy.
Since Cardano transactions have a much lower negative impact on the environment, it is an environmentally-sustainable cryptocurrency. As a result, the use of a PoS chain like Cardano can make market participants ‘greener’.
3. Polygon (MATIC) – Leader in Layer-2 Blockchain with “Green Manifesto”
Polygon is a sustainable cryptocurrency that helps the Ethereum network become more scalable. Polygon links to Ethereum and handles some of the workloads as a ‘Layer-2 blockchain’. As a result, Polygon can process 65,000 transactions per second (TPS) for Ethereum’s users.
Similarly to Cardano, Polygon validates transactions using a PoS consensus protocol, a much more environmentally friendly approach. Additionally, Polygon recently released its Green Manifesto’ presenting plans to become carbon-negative by 2022.
Polygon has also pledged $20 million to a variety of community initiatives aimed at combating climate change. Among them is the purchase of $400,000 worth of BCT and MCO2 carbon credits in order to offset emissions. Polygon aims to become the most sustainable cryptocurrency within the blockchain industry by taking this approach.
4. Algorand (ALGO) – A blockchain network that is widely used to reduce carbon emissions
A more scalable alternative to Ethereum, Algorand was one of the best emerging cryptocurrencies of 2021. Silvio Micali, a 2012 Turing Award winner at MIT, invented this blockchain network. Based on Micali’s cryptographic knowledge, Algorand can handle approximately 1,000 transactions per second.
With its ‘Pure Proof-of-Stake’ consensus protocol, Algorand helps the environment. TPS continues to increase over time as this protocol reduces energy expenditure per transaction. Additionally, Algorand has partnered with leading company ClimateTrade to offset carbon emissions and sponsor climate change projects.
Additionally, this sustainable energy crypto partners with organizations that aim to protect rainforests and facilitate reforestation. As part of its carbon offset program, Algorand buys carbon credits directly via smart contracts. As a result of this process, Algorand’s team has guaranteed net carbon-negative operations for its network.
5. Chia (XCH) – Crypto with a unique consensus mechanism that is most sustainable
The Chia project has also been making waves recently as one of the best green cryptocurrency projects. Chia is a blockchain network that looks to be highly secure, compliant, and sustainable. In terms of energy consumption, Chia’s network uses just 0.16% of Bitcoin’s and 0.36% of Ethereum’s
Over the past year, Chia coin price predictions have been highly optimistic due to the network’s innovative ‘Proof-of-Space-and-Time’ consensus mechanism. This eliminates the need for mining and secures the network instead of using free storage space. The ‘farmers’ can write ‘plots’ on their HDDs and SSDs, which are used to create blocks and generate rewards.
By using storage that is currently unused, the Chia network has a significantly smaller environmental impact. The network’s native token, XCH, is now available for purchase on many of the world’s best crypto exchanges due to its sustainable crypto mining strategy.
6. Solana (SOL) – 99% Energy Efficient Blockchain Network
The Solana cryptocurrency project offers unsurpassed speed and efficiency while being environmentally sustainable. DApp developers can host their creations on this blockchain network, which has smart contract functionality. Consequently, Solana has become one of the top networks for DeFi and NFT projects.
In 2021, Solana became one of the fastest-growing cryptocurrency projects due to its ‘green’ approach. To verify transactions, Solana uses a unique ‘Proof-of-History’ algorithm, which allows it to process around 65,000 transactions per second, each costing a fraction of a cent.
A Solana transaction costs only 2,707 joules – approximately 99% less than an Ethereum transaction. Additionally, the Solana Foundation made the network carbon neutral in 2021 and plans to maintain that status in 2022.
Furthermore, Solana releases semi-regular ‘Climate Footprint Analysis Summaries’ to demonstrate its sustainability.
7. Nano (XNO) – An alternative to Bitcoin that is sustainable
The Nano peer-to-peer payment system allows users to receive and send crypto instantly and is decentralized. While this is similar to Bitcoin, Nano makes use of a ‘block-lattice data structure’ to differentiate itself. By splitting the network into different parts, this approach reduces energy consumption.
Because Nano doesn’t require network participants to download the entire network, it is a greener alternative to Bitcoin. The Nano protocol is similar to PoS, but it allows NANO holders to vote on who will validate on-chain transactions.
Nano can also handle around 1,000 TPS and offers near-instant finality. Nano has emerged as one of the best eco-friendly crypto projects for those who want quick, low-cost transfers due to its efficiency and energy-saving consensus mechanism.
8. Hedera (HBAR) – A blockchain alternative that is eco-friendly
Despite the fact that most of the projects listed in this guide are based on blockchain technology, Hedera departs from that model. Rather than using the blockchain to validate transactions, Hedera uses a ‘hashgraph’ instead. As a result, the Hedera network is able to complete up to 10,000 TPS while consuming minimal energy.
Environmental sustainability is one of Hedera’s core values, which is why the development team purchases carbon offsets every quarter. In order to compensate for the increased energy consumption as the network grows, Hedera intends to increase its expenditures on carbon offsets.
In order to gain exposure to an eco-friendly project, investors have been flocking to buy Hedera Hashgraph. The company also announced the launch of a $100 million ‘sustainable impact fund,’ which will invest in solutions to reduce greenhouse gas emissions.
9. SolarCoin (SLR) – A sustainable crypto that incentivizes solar energy
SolarCoin is another sustainable cryptocurrency to keep an eye on. Since 2014, SolarCoin has been incentivizing market participants to switch to solar power. SLR rewards are distributed to those who complete solar installations as part of the project’s mission to make solar energy free.
It is SolarCoin’s ultimate goal to help SLR’s value exceed the production cost of solar energy – which will make it theoretically ‘free’. A SolarCoin is distributed per MWh of verified electricity produced, providing a clear financial incentive for switching.
SLR hasn’t made a name for itself as a utility token because it cannot be spent on goods or services. Despite this, SolarCoin remains the go-to crypto related to solar power, ensuring it continues to attract environmentalists.
10. Stellar (XLM) – A blockchain-based project aiming to revolutionize payments
Stellar is another sustainable crypto project. Decentralized payments network Stellar aims to improve on ‘traditional’ payment networks. Stellar offers decentralized transactions at extremely low costs, whereas these networks are often slow and costly.
Stellar aims to improve the efficiency of financial transfers for both individuals and entities. Through the ‘Stellar Consensus Protocol’, transactions are validated using nodes. In five seconds, transactions can be processed – exponentially faster than SWIFT.
The Stellar Consensus Protocol allows Stellar to validate transactions with much less energy than Bitcoin. It is also not necessary for validators to possess advanced computer hardware to participate in the network. By reducing energy consumption, Stellar remains a greener alternative to Bitcoin.
11. EOS (EOS) – Blockchain with sustainable technology that is ‘Feeless’
Finally, we have EOS to round out our list of the most sustainable cryptocurrencies. By inflating the price of its native token, EOS aims to completely eliminate transaction fees. Additionally, the EOS network is capable of handling 4,000 TPS with a 0.5-second finality time.
The first carbon-neutral blockchain, EOS, is also appealing from a sustainability perspective. Since EOS uses the Delegated Proof-of-Stake protocol, it produces less than 0.01% of Bitcoin’s CO2 emissions.
EOS also carefully calculates its CO2 emissions from server activity and selects carbon offset projects to reduce its footprint. EOS’ team was able to offset a whopping 281 tonnes of CO2 this year and hopes to do the same next year.
How Can Cryptocurrencies Be Sustainably Managed?
Following our discussion of the top sustainable cryptos, let’s discuss what makes a cryptocurrency project a sustainable investment. Blockchain networks – specifically Bitcoin – are most often discussed in terms of energy consumption.
The Bitcoin network consumes about 150 terawatt-hours of electricity per year, according to a Cambridge University report. Over 60 megatons of CO2 are pumped into the atmosphere, more than the entire country of Argentina. This has a significant negative impact on the fight against climate change, as expected.
Bitcoin consumes so much energy because it uses advanced computer hardware to solve mathematical problems during the mining process. Increasing adoption of Bitcoin has resulted in a higher number of transactions that need to be validated, requiring more electricity.
What can cryptocurrency projects do to avoid this approach and become more sustainable? A number of top trending cryptos try to accomplish this by using a different consensus algorithm than Bitcoin’s Proof-of-Work. As an alternative to mining, the most common protocol is ‘Proof-of-Stake’ (PoS).
PoS networks dramatically reduce their energy expenditure by eliminating mining, resulting in lower carbon dioxide emissions. Additionally, many of these networks have pledged to become carbon neutral or even carbon negative in order to help the environment. Additionally, they partner with leading eco-friendly institutions to help with reforestation and other pressing issues.
Some of the best Web3 coins, however, take a more hands-on approach. In order to reduce its environmental impact, EOS actively invests in carbon-offsetting companies.
Cryptocurrency Sustainability: Why It Matters
With the expansion of the cryptocurrency market, more attention is being paid to its impact on the environment. As blockchain networks and other crypto projects consume vast amounts of electricity, this is only natural.
What is the importance of sustainable crypto? In the years to come, eco-friendly crypto projects will become leaders in their field for several reasons:
Reduces global warming
In order to slow down global warming, sustainable crypto mining projects and similar enterprises are essential. Climate change refers to an increase in the temperature of the earth’s climate over time. Many crypto projects emit large amounts of carbon dioxide each year, which contributes to global warming.
Cryptocurrency projects are often cheaper than the first-movers in the space, but more people are opting to invest in them. To achieve consensus, Bitcoin and Ethereum networks use PoW systems as of this writing. The energy consumption of these systems has been demonstrated in this article.
Yet, sustainable cryptos offer the same (if not better) services while reducing energy consumption. In the coming years, sustainable crypto will likely play a significant role in slowing down global warming.
Invest in a ‘green’ asset
Since this niche has grown exponentially over the past decade, market participants wondering how to invest in blockchain technology have a wide variety of projects to consider. As a result of this growth, an abundance of socially responsible investment opportunities have emerged, including a number of ‘green’ projects.
Long-term growth is best achieved by companies that recognize and attempt to solve the world’s challenges. As the climate situation worsens, demand for these projects will also rise in the crypto market. In light of this, sustainable cryptos remain essential for investors seeking green investments.
Provides a platform for businesses and individuals to work together
Last but not least, sustainable cryptocurrencies are also essential for connecting individuals and businesses. Today, ordinary people and giant corporations tend to have strained relationships. In order to solve this problem, sustainable crypto projects offer platforms that allow these stakeholders to band together.
Finding Sustainable Cryptocurrencies
The need for change in society is driving more sustainable crypto projects than ever before. Newcomers, however, often have difficulty uncovering these projects, since many identifying characteristics are complex or advanced.
There are several ways investors can find sustainable cryptos to simplify this process:
Choose blockchains without proof-of-work (PoW)
When it comes to investing $1,000 (or any amount) in sustainable cryptocurrencies, blockchain networks that use PoW consensus mechanisms should be avoided. Nowadays, there are many alternatives to these mechanisms, including Proof-of-Stake and Proof-of-History.
Alternative networks can also be used by investors instead of blockchains. In this regard, Hedera leads the way, as its ‘hashgraph’ approach remains decentralized, eco-friendly, and decentralized without using blockchains.
Utilize social media channels
Finding sustainable cryptos is easy with social media. Green cryptos often have the highest long-term potential, making them the best cryptos to buy on Reddit.
Furthermore, many of the best crypto YouTube channels regularly discuss emerging projects that reduce CO2 emissions.
Identify innovative use cases
Eco-friendly cryptos can be discovered by investors by seeking out projects with unique use cases. Even though PoS blockchains are undoubtedly eco-friendly, they still consume energy, creating a need for carbon-neutral (or carbon-negative) solutions.
Cryptocurrencies with the most upside often have unique use cases, which provide investors with unique selling points (USPs). In addition to helping the environment, many of these cryptos offer huge investment potential.
Keep an eye on notable partnerships
In order to make a significant impact on their own, sustainable cryptocurrencies often partner with large institutions. In addition to raising awareness of the cryptocurrency and its eco-friendly mission, this also helps spread the word about the cryptocurrency.
Polygon is another leading blockchain project. Polygon has committed $20 million to various community initiatives to make a positive impact.
Cryptocurrency with the highest sustainability – Conclusion
In conclusion, this guide examines the most sustainable cryptocurrency projects of 2022, discussing how they positively impact the environment and their high-value potential.
It may be worthwhile to partner with eToro if you are looking for sustainable crypto investments. Investors can purchase cryptocurrency through eToro for a flat fee of 1% (plus the market spread). In addition, investors can open positions on eToro for just $10, making it ideal for beginners.
FAQs
Is crypto sustainable?
Many cryptocurrencies consume a great deal of energy; Bitcoin, for instance, isn’t an extremely eco-friendly currency. The Algorand project, however, offers stakeholders a financial incentive to help the environment as an alternative to these cryptos.
What is the most sustainable cryptocurrency?
We recommend Hedera and Cardano as the most sustainable cryptocurrency. With PoS consensus, this blockchain network validates blocks using a fraction of the energy that Bitcoin uses.
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