AVAX price rallied past $80 over the weekend for the first time since January 21st. Though the native token on the fast smart contracts platform corrected to $74 later during the weekend, it managed to bounce back to $80 at the start of the week. AVAX/USD set an intraday high of $ $85.17 yesterday but has since retreated to around $83.50.
Report indicates Avalanche’s energy efficiency is markedly better than PoW blockchains
The Crypto Carbon Ratings Institute (CCRI) recently released a report that showed Avalanche consumes 200,000 times less energy than Bitcoin and 35,000 times less than Ethereum. CCRI, an organization that assesses the impact of crypto on the environment, examined a number of factors, including network infrastructure, different hardware configurations, and the size of the network.
These parameters formed the basis of the Energy Efficiency and Carbon Footprint of Proof-of-Stake Blockchain Protocols Report that tracked the carbon footprint and energy usage of eight blockchain networks. The ecosystems put to the study included Avalanche, Algorand, Cardano, Solana, Tezos, and Polkadot. PoW chains Bitcoin and Ethereum (yet to complete the transition) were also featured.
Of the said blockchains, Ethereum and Bitcoin were found to consume the highest amount of power – 89,780,000,000 kWh and the former, 17,300,000,000 kWh every year. The report noted that the energy taken up by Bitcoin validation can serve as much as 8.6 million households in the US. Ethereum’s, on the other hand, equates to 1.6 million times the amount an average household takes, being that the average US home uses 10,600 kWh annually.
Avalanche’s efficiency and value for power
Avalanche ranked third for best energy use behind PoS chains Polkadot (DOT) and Tezos. Comparatively, the layer-1 smart contract platform from Ava Labs uses energy equivalent to just that of 46 homes, which is only 0.0005% that of Bitcoin and 0.0028% of Ethereum’s consumption.
Further, the CCRI observed that Avalanche also performs quite soundly in terms of the economic power per kWh locked on the network. Avalanche has the best energy efficiency in this aspect, given that it boasts $18,454 in total value locked (TVL) per kWh.
In comparison, Polkadot’s is $19.18 kWh, Cardano has a $120 figure, Algorand $161, Tezos $943, and Solana $4,395 per kWh.
Blockchain’s high energy use is a blanket assumption
CCRI chief executive, Ulrich Gallersdörfer, acknowledged that energy-intensive proof of work chains have defined – perhaps tainted – the public’s perception of cryptocurrencies. He set forth that such should not be the case, given that huge variations exist in energy consumption by PoW and PoS blockchains.
On his end, Ava Labs CEO Emin Gün Sirer lauded Avalanche’s ecosystem for its low energy profile as it uses up little energy to validate transactions and ownership. He also noted that the blockchain gifts developers a platform to “build a better financial system,” and at the same time be a part of the solution to the crisis that is climate change.
To some degree, the report submits that PoS chains should not be censured heavily for energy use like Ethereum and Bitcoin. The two consume a lot more energy and being the case, it is unrealistic to enclose them in the same conversation bracket as other PoS blockchains.
Avalanche (AVAX) market performance
AVAX/USD has been swinging between $82 and $84 since the start of the week. The pair has gained over 5.50% in the last 24 hours, bringing the weekly gains to 20.62% at press time. Though the token briefly breached $85 earlier on, it is yet to get a firm grip at this level. AVAX bulls will be keen to establish a solid footing at this range in the next run.
AVAX/USD 7-day trading chart
The token is expected to see more gains if (and as) the market continues recovering from heavy losses witnessed in January. Crypto analyst Smart Contracter recently revealed that Avalanche (AVAX) is one to watch out for in the altcoin market.
According to the pseudonymous trader and strategist, the coin is preparing for a rally that could see it set a new all-time high. Currently, AVAX is trading roughly 43% below its standing record high set in November.
“Where alts are concerned, I’m really digging AVAX. Not only did it have a very strong reaction from a very major 0.618 level but also [the] move down from the highs was a three-wave corrective ABC. Expecting this to outperform many alts, potentially even [an] all-time high, “the analysts wrote.
To learn more about this token visit our Investing in Avalanche guide.
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