Ethereum Ahead of Cardano, Solana in ESG Rankings, Bitcoin Fell Behind Due to Energy Consumption: Report
Ethereum came out on top in the first institutional-grade crypto ESG ranking, followed by Solana and Cardano, while Bitcoin fell below due to its heavy energy consumption.
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The Only Digital Asset to Receive an AA Grade Was Ethereum
According to a new report by CCData and Crypto Carbon Ratings Institute, 40 of the biggest, most liquid digital assets were evaluated by the ESG Benchmark based on factors like decentralization, security and climate effect.
Assets having a grade of BB or higher were regarded as top-tier in the research. The benchmark examined environmental, social, and governance risks and possibilities for digital assets.
The only digital asset to receive an AA grade was Ethereum, which did well in all three ESG criteria. This is largely because the network just switched to proof-of-stake during the Merge. Solana, Cardano, and Polkadot scored well in decentralization, earning them an A grade.
Bitcoin gets a B grade, scoring highly in the social and governance categories but receiving criticism for its high energy usage and hardware requirement. Environmental, social, and governance (ESG) objectives play a bigger part in investments now than ever before, especially among institutional investors and big asset management companies.
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