The impact of cryptocurrency on the environment is one of the most important topics in the crypto realm. Bitcoin and Ethereum, for example, which use proof-of-work consensus system, tend to attract more criticism.
To address this, chains like Algorand are coming up with novel ways to save the environment.
The next move from Algorand is a unique self-sustaining smart contract that automatically sets aside a fraction of every transaction fee to help offset its carbon emissions as part of its commitment to the environment.
It’s no surprise that Algorand is the first chain of its kind, as it’s also the first chain to be carbon negative.
As reported in December last year, Solana had also risen to the rank of being carbon neutral for the year 2021.
Despite being proof-of-work, Solana uses significantly less energy per transaction than Bitcoin and Ethereum, which consume 7.41 billion and 777 million Joules per transaction, respectively.
Although Algorand is truly proof of stake and a forerunner in this industry, its investors aren’t responding as positively as expected.
The majority of investors are remaining silent and avoiding participation. Daily active users on the blockchain have been hovering around 40k, with only a brief jump in mid-February.
This is most likely due to the fact that ALGO has not been the most profitable asset in recent months. After reaching an all-time high of £1.85 in September 2021, the altcoin has been steadily declining, plummeting by 69.69% in just seven months.
It is currently trading near a 14-month support level, which if broken would be disastrous for investors.
Nearly 94% of the coin’s 11.99 million holders haven’t experienced returns since March, which could be one of the reasons why over 10.4 million ALGO investors left the market and haven’t returned.
At the same time, given the current state of the market, it only seems reasonable that they do not invest in this asset. The 10.95 million investors that are in danger will gladly support this.