Most Sustainable Cryptocurrency To Invest In 2023

Last Updated October 6th 2022
17 Min Read

With the world now facing a stark future due to climate change, the case for environmentally friendly cryptocurrencies is gaining traction. 

That's why there has been an upsurge in cryptocurrencies that promise both the security and reliability of Bitcoin without the energy consumption and environmental issues that characterize it. Such cryptocurrencies are hoping to attract more people away from Bitcoin's adverse effects on Mother Nature. 

This article focuses on sustainable cryptocurrencies to keep an eye on in 2023. It also teaches investors how to spot environmentally sustainable cryptocurrencies to trade and invest in long-term.

12 Most Sustainable Cryptocurrencies To Buy In 2023

Bitcoin is a cryptocurrency that uses an energy-intensive process called "proof of work" to ensure security. This means it requires more power than other coins and could strain our planet's resources unnecessarily if trends don't improve in the coming years.

Luckily blockchain technology has options. For the environmentally conscious that want to buy cryptocurrencies but don't want to invest in Bitcoin, many high-potential Bitcoin alternatives have come up.

Below are 12 sustainable cryptocurrencies that could drive cryptocurrency adoption while remaining environmentally friendly.

  • Cardano (ADA) -  Popular Sustainable Cryptocurrency To Buy Now
  • Ethereum (ETH) -  Bitcoin's Number Two That Is Leading The Way In Sustainability
  • Solana (SOL) -  Top 10 Cryptocurrency With A Low Carbon Footprint
  • Polygon (MATIC) -  Top Ethereum L2 With A Green Strategy
  • Algorand (ALGO) -  Most Adopted Emissions-Free Cryptocurrency
  • Nano (XNO) -  Sustainable Cryptocurrency With Unmatched Scaling Capabilities
  • Hedera (HBAR) -  Sustainable Cryptocurrency With Next-Gen Technology
  • Stellar (XLM) -  Low Carbon Cryptocurrency That Is Banking The Unbanked
  • Chia (XCH) -  Top Sustainable Cryptocurrency With A Revolutionary Consensus Algorithm
  • EOS (EOS) -  Sustainable Zero Fee And Highly Scalable Blockchain
  • IOTA (MIOTA) -  Zero Carbon Cryptocurrency That Runs On DAG Technology
  • SolarCoin (SLR) -  Sustainable Cryptocurrency Helping Drive Solar Adoption

 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

An In-depth Look At The Most Sustainable Cryptocurrencies To Buy Now

The negative impact cryptocurrency miners have on the environment is beginning to outweigh any positive benefits they provide. Bitcoin, in particular, has been seen as an environmentally destructive force because of its high energy consumption and contribution to climate change. This is starting to raise concerns amongst institutional investors bound by ESG rules and regulations. 

That's why environmentally friendly cryptocurrencies are starting to draw more investor interest. If you want to invest in environmentally friendly cryptocurrencies, the ones discussed below would be a good pick. 

These 12 cryptocurrencies are among the most sustainable cryptocurrencies with a high potential for value growth. Read on to find out more about them. 

1. Ethereum (ETH) – Bitcoin's number two that is leading the way in sustainability

Ethereum is easily one of the best cryptocurrencies to buy today. It stands strong for being the most decentralized and adopted smart contracts cryptocurrency. For a long time, Ethereum was heavily criticized for its poor environmental metrics. However, this has changed since the Merge when Ethereum stopped running as a Proof-of-Work blockchain and became Proof-of-Stake. With the merge, Ethereum is now using just a fraction of the energy that it has been using since it launched. 

Essentially, Ethereum is now one of the most environmentally sustainable cryptocurrencies in the market. That's on top of its other core metrics, such as being one of the market's most adopted and secure blockchains. Ethereum is only second to Bitcoin in terms of fundamentals. For an investor looking to buy Ethereum, it is one of those few cryptocurrencies that are listed on pretty much all cryptocurrency exchanges. 

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2. Cardano (ADA) – Popular sustainable cryptocurrency to buy now.

Cardano stands out as one of the most popular sustainable cryptocurrencies in the market today. Cardano is an open-source blockchain that uses a 'proof of stake' protocol to confirm transactions. This is the exact opposite of Bitcoin, which uses Proof-of-Work, which requires energy-consuming machines to carry out complex computations to validate transactions and keep the network secure. 

While PoW blockchains are energy inefficient, PoS relies on validators who have a stake in the network to verify transactions and keep the network safe. This means the network can do what Proof-of-Work can do at a fraction of the energy needs. 

The best part about the Cardano Proof-of-Stake algorithm is designed to guarantee decentralization. In fact, Cardano is one of the few cryptocurrencies that have conclusively solved the blockchain trilemma of security, scalability, and decentralization.

For this reason, Cardano is gaining in popularity as a sustainable cryptocurrency that could rival Bitcoin in adoption going into the future.

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3. Solana (SOL) – A Top 10 cryptocurrency with a low carbon footprint

Solana is a blockchain network that offers speed and efficiency in an environmentally sustainable way. Its smart contract functionality makes it the perfect platform for hosting dApps.

The idea of a green blockchain may seem far-fetched initially. Still, Solana has proven it can handle high volumes with its 'Proof-of History' algorithm and only cost pennies per transaction. All this is at zero expense to the environment. 

Solana strives for environmental sustainability. Its transactions energy usage stands at just 2700 joules, which is 99% less than the amount of energy that Ethereum requires. The Solana Foundation has also committed itself to climate research with the goal being to make Solana Carbon completely free of carbon emissions going into the future. 

Being one of the best know cryptocurrencies in the market today, there is no doubt that Solana is one of the most sustainable cryptocurrencies to buy in 2023 and going into the future. 

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4. Polygon (MATIC) – Top Ethereum L2 with a green strategy

As the Ethereum network grows and becomes more popular, it is driving demand for sustainable cryptocurrencies like Polygon. A 'Layer-2 blockchain' with the ability to handle 65k TPS, Polygon is helping Ethereum complete transactions efficiently and being environmentally friendly. 

The Polygon network is a step forward for the environment with its PoS consensus protocol, which validates transactions better than alternative approaches. Polygon recently revealed its green manifesto that includes becoming Carbon negative within 2022.  

Polygon is also investing in initiatives that are aimed at making the world a greener place. For instance, Polygon has a $20 million environmental pledge. They are also buying $400k of Carbon credits to neutralize emissions. 

With such moves and the fact that Polygon is tied to the Ethereum blockchain, it is not hard to see why it is one of the best sustainable cryptocurrencies to invest in today.

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5. Algorand (ALGO) – Most adopted emissions-free cryptocurrency 

Algorand is one of the top Ethereum competitors leading the way in sustainable blockchain development. Algorand was created by an award-winning MIT professor who specializes in cryptography. Algorand can process up to 1,000 transactions per second and does not rely on miners for validity as many other blockchains do.

Algorand's innovative 'Pure Proof-of Stake protocol' reduces energy expenditure per transaction while simultaneously increasing the number of transactions that can be completed in a given period. Algorand's credentials as a top sustainable cryptocurrency are also evident in the partnerships it has been making on the environmental sustainability front. Among them are collaborations with organizations working hard to fight climate change, such as ClimateTrade. Algorand even buys carbon credits to offset its carbon footprint. 

This coupled with Algorand's scalability makes it one of the most sustainable cryptocurrencies with the potential for exponential adoption going into the future. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

6. Nano (XNO) – Sustainable cryptocurrency with unmatched scaling capabilities

Nano is a cryptocurrency that uses peer-to-peer technology for transactions. The difference between Nano and blockchain-based cryptocurrencies like Bitcoin lies within its 'block-lattice data structure', which drastically cuts energy costs by dividing the network into tiny portions. 

This guarantees that transactions are completed fast in a decentralized environment. Nano can handle up to 1000 Transactions per second. This is something that very few cryptocurrencies can achieve without leaning towards centralization. 

Nano is also a more environmentally-friendly cryptocurrency than Bitcoin because it doesn't require every user to download its entire history. In addition, by using a protocol that closely resembles blockchain's Proof-of-Stake, NANO can stay decentralized by allowing Nano coin holders a chance to vote on the direction that the cryptocurrency should take in the future. 

Essentially, Nano uses a technology that gives it all the good things that blockchain offers, minus the slow speeds and environmental costs.        

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

7. Hedera (HBAR) – Sustainable cryptocurrency with next-gen technology

Most people are only familiar with blockchain-based cryptocurrencies when it comes to distributed technologies for payment systems. However, some cryptocurrencies are decentralized but use technologies far superior to the blockchain. One of those we have mentioned above is Nano. Another cryptocurrency that falls in this category is Hedera. Hedera uses a technology that makes it one of the best sustainable cryptocurrencies while also giving other benefits, such as low transaction costs and unrivaled scalability. 

Hedera is a new take on decentralization that makes blockchain look ancient. It uses an innovative approach to validation and verification. The 'hashgraph', as it's called, allows for up 10k transactions per second with low energy consumption - making this network efficient enough without relying heavily upon mining processes such as those used by Bitcoin.

Besides building one of the most sustainable cryptocurrencies ever, the Hedera team is highly on environmental protection matters. For instance, the Hedera team buys carbon credits every quarter, with their goal being to make Hedera carbon negative. For cryptocurrency investors who want to protect the environment, Hedera is undoubtedly one of the best investments. Hedera is also available on most top-rated cryptocurrency exchanges. As such, it should not be hard to invest in HBAR. 

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8. Stellar (XLM) – Low carbon cryptocurrency that is banking the unbanked

Also on the list of highly sustainable cryptocurrencies to buy is Stellar (XLM). The Stellar payments network has been designed to facilitate transactions at a very low cost compared to centralized payment methods such as Visa and MasterCard. So far, it has achieved this goal as Stellar is one of the fastest and lowest-cost cryptocurrencies in the market today. 

The Stellar Consensus Protocol is a new, faster way for banks and other financial institutions to process transactions. It does this with an exponentially greater degree of security than traditional systems like Swift because nodes are distributed globally. To give you an idea of how fast Stellar transactions are, this network can complete transactions in less than 5-seconds to any location globally.

The best part is that Stellar scores equally highly on sustainability. Unlike Bitcoin and other Proof-of-Work cryptocurrencies, the Stellar Consensus Protocol uses less than 0.01% of Bitcoin's energy. This is a big deal and makes XLM an environmentally-friendly cryptocurrency to buy. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

9. Chia (XCH) – Sustainable cryptocurrency with a revolutionary consensus algorithm

Chia can't miss among the most sustainable cryptocurrencies to watch today. With its low power consumption and sleek design, Chia is set to revolutionize how we think about blockchain networks.

The new sustainable eco-friendly network will allow users access without transaction fees. To give you an idea of how eco-friendly Chia is, this network uses less than 0.30% of the energy consumed by Bitcoin and Ethereum. 

To eliminate unnecessary energy consumption, Chia uses an innovative algorithm called Proof-of-Space-and-Time. Through this algorithm, the network is secured by free storage space instead of mining, eliminating any need for expensive hardware. Instead, network validators known as farmers write plots on their HDD/SDD on their devices to generate blocks and then get rewarded for it. 

Since Chia utilizes already existing space in computers, the environmental impact of the Chia network is pretty negligible. The innovative nature of the Chia network as a sustainable blockchain is evident in its rapid acceptance by investors since it launched. 

You can find it on all top cryptocurrency exchanges if you want to buy Chia and get in on a fast-growing sustainable blockchain.

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10. EOS (EOS) – Sustainable zero fee and highly scalable blockchain

EOS (EOS) is one of the older and better-known cryptocurrencies in the market today. It is also one of the most sustainable cryptocurrencies in the market. Fast, cheap, and secure - that's the idea behind EOS. The blockchain network can handle 4k transactions per second and finality of 0.5 seconds. 

On top of being fast and cheap, EOS also has higher-level sustainability compared to other blockchains. It's the first carbon-neutral blockchain in history thanks to its Delegated Proof-of-Stake protocol, making it less emitting than Bitcoin. 

The team behind EOS is also actively involved in ensuring that EOS remains a highly environmentally sustainable cryptocurrency. They do this by investing in Carbon offset projects. Such investments have seen the EOS team offset nearly 300 tons of Carbon in 2022, a first for any cryptocurrency. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

11. IOTA (MIOTA) – Zero carbon cryptocurrency that runs on DAG technology

Lastly in our list of the most sustainable cryptocurrencies to invest in today is IOTA (MIOTA). IOTA has zero emissions because it uses an entirely different distributed technology from blockchain-based cryptocurrencies. IOTA uses DAG-distributed technology which allows for free transactions, and near-instant transactions, while at the same time taking care of the environment. 

For its efficiency and carbon-zero transactions, it's not hard to see why IOTA is a good investment for anyone looking for sustainable cryptocurrencies in 2023.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

12. SolarCoin (SLR) – Sustainable cryptocurrency helping drive solar adoption

You probably are not aware of SolarCoin, but it is one of the market's most environmentally sustainable cryptocurrencies. SolarCoin is an exciting project with the vision to make solar power free by distributing rewards for completing installations. All participants will be incentivized and empowered while making our world cleaner one install at a time.

Despite its strong use case, SolarCoin has yet to gain market traction. That's largely because it is still a low-cap cryptocurrency. However, the opportunity for high gains in the cryptocurrency market is usually in the low-cap category. For an investor looking to invest in a sustainable cryptocurrency. It is a top utility token worth keeping an eye on in 2023. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Why Are Some Cryptocurrencies Sustainable And Others Are Not?

Up to this point, we have looked at some of the market's most sustainable cryptocurrencies. But they are not the only ones. To choose the ones that are sustainable amongst those not on this list, it is essential to understand the factors that make a cryptocurrency environmentally sustainable. 

The main factor that determines its sustainability is the consensus mechanism. Cryptocurrencies that use Proof-of-Stake, where token holders validate transactions tend to be the most environmentally friendly. 

On the other hand, Proof-of-Work cryptocurrencies are the least sustainable. That's because of the huge amount of energy needed to validate transactions. For instance, Bitcoin mining, the process of validating Bitcoin transactions, takes up more energy than entire countries. Also, a lot of miners use fossil fuels in a bid to cut down on costs. 

For this reason, even major chains like Ethereum are now shifting from Proof-of-Work to Proof-of-Stake to cut down on their carbon footprint. 

Are Sustainable Cryptocurrencies A Necessity?

There are multiple reasons why sustainable cryptocurrencies are a necessity, especially now that blockchain technology is going mainstream. Some of them are as below:

Cutting Down On Global Warming 

The world is warming up, and scientists are afraid that the process may now be irreversible and with disastrous consequences. That's why world governments are pushing for sustainable living, and cryptocurrencies are no exception. 

Investors aware of the dangers of global warming are also opting to invest in cryptocurrencies that do not add more Carbon to our atmosphere. As more investors demand sustainable cryptos, there is a good chance that the cryptocurrency industry could play a role in slowing down global warming through sustainable cryptocurrencies.

They Help Investors Meet Their Green (ESG) Goals

Many institutional investors are wondering how to invest in blockchain and cryptocurrencies without compromising on their green goals. With more cryptocurrency investors becoming more aware of the need to go green, sustainable cryptocurrencies are an opportunity. 

Such investors are following various research showing that climate-friendly investments are likely to give the best returns long-term.

How Do You Find Cryptocurrencies To Invest In?

There are numerous sustainable cryptocurrencies in the market today. But how can a cryptocurrency newbie find them and make suitable investments? 

If you are facing such a challenge, here are some ways an investor can find and buy sustainable cryptocurrencies. 

Avoid Proof-of-Work Blockchains

As a small investor probably looking for a way to invest $1000 or even $100 in cryptocurrencies but want to stay climate-friendly, the best way to do it is by avoiding Proof-of-Work blockchains. 

There are tons of cryptocurrencies that do not use Proof-of-Work. Some, like Nano, use next-generation technologies miles ahead of blockchain regarding scalability and environmental impact.

Look At A Cryptocurrency's Use Case

Don't fall for pumps and dumps even as you invest in non-Proof-of-Work blockchains. Make sure to go for cryptocurrencies that have strong use cases. These also tend to be the cryptocurrencies with the most upside potential, both short term and in the long run.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Top Sustainable Cryptocurrency – Conclusion

In this article, we have looked at some of the top sustainable cryptocurrencies in 2023. We have also considered the core factors when investing in sustainable cryptocurrencies. 

If you fancy any of the top sustainable cryptocurrencies discussed above, you can buy them on eToro. eToro is a regulated broker with some of the lowest trading fees in the market – a flat rate of 1% and the spread. The best part is that eToro has a very low entry barrier. You can spread it across multiple cryptocurrencies with a deposit of just $50. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

FAQs

Are cryptocurrencies sustainable?

Yes, some cryptocurrencies are environmentally sustainable. Some are even Carbon negative. 

What should investors be looking for in sustainable cryptocurrencies?

The key thing to look for in a sustainable cryptocurrency is the consensus mechanism. Proof-of-Stake cryptocurrencies tend to be more sustainable than Proof-of-Work cryptocurrencies. 

Is there a demand for sustainable cryptocurrencies?

There is growing awareness that the world is warming up and that we must move away from fossil fuels. Research also shows green investments will be profitable long term. As such, the demand for green cryptocurrencies is there, and it's growing.

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