Ethereum's Energy Efficiency Near Lower End of PoS Networks
Vexoda Newsroom
A Cambridge study places Ethereum near the lower end of energy intensity among proof-of-stake blockchains but notes it still uses more electricity than most compared networks. This marks a significant
In a recent analysis by Cambridge University’s Centre for Alternative Finance (CAF), Ethereum has been identified as having one of the lower energy intensities among proof-of-stake (PoS) blockchains. The study, which assessed various PoS networks, found that Ethereum consumes approximately 7.87 gigawatt-hours annually and has a market-value-adjusted energy intensity of about 33 kilowatt-hours per $1 million.
This places Ethereum behind only BNB Chain in terms of energy efficiency among the PoS blockchains studied. Solana was found to be the most energy-intensive, consuming around 13.48 gigawatt-hours annually with an energy intensity of roughly 283 kilowatt-hours per $1 million market value—about eight and a half times that of Ethereum.
The report provides valuable insights into the post-Merge footprint of Ethereum, highlighting significant reductions in its overall electricity use. Post-Merge, which occurred in September 2022, replaced energy-intensive mining with more sustainable staking mechanisms. The study estimates that about 56.4% of Ethereum’s power now comes from renewable and nuclear sources, compared to just 43.6% derived from fossil fuels.
Ethereum's transition was marked by the removal of its proof-of-work (PoW) system during the Merge, which drastically reduced energy consumption. The average node consumes around 105 watts per day, with about 8,522 discoverable full nodes in operation—64% hosted on cloud or enterprise facilities and 36% running from residential connections.
This study offers policymakers and investors a detailed basis for evaluating blockchain sustainability. It underscores the ongoing shift towards more environmentally friendly validation mechanisms while still acknowledging Ethereum’s current reliance on non-renewable energy sources. The findings provide context as traders monitor broader market trends, such as price movements and technological advancements in the sector.
Going forward, traders should keep an eye on how these energy efficiency metrics evolve alongside other factors like network growth, regulatory developments, and shifts in renewable energy adoption among node operators.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.