ENVIRONMENTAL

Key Data and Insights Into Digital Asset Environmental Trends

ENVIRONMENT

KEY HIGHLIGHTS

ASSETS INCREASINGLY BUILD ON TECHNICAL FUNDAMENTALS WITH LOW ELECTRICITY REQUIREMENTS.

33 out of the top 40 assets rely on a consensus mechanism, such as Proof-of-Stake, which does not exceed 10 GWh of annual electricity consumption. This is particularly interesting as only a few years ago, the electricity-intensive Proof-of-Work mechanism was dominant among top digital assets.

Only a few assets require specialised and single-purposed hardware. Among the top 40 assets, only 4 require the use of so-called ASICs, which must be regularly replaced to stay competitive. These ASICs cannot be repurposed, thereby generating inevitable e-waste.

90%

Of the analysed assets do not require specialised or single-purposed hardware.

Source: CCData | Click on the chart to interact with the data

FOR THE MAJORITY OF ASSETS, THE CARBON INTENSITY OF ELECTRICITY GENERATION IS BELOW THE WORLD AVERAGE.

For 25 of the analysed assets, the carbon intensity ranges between 300 and 400 gCO2/kWh which is slightly below the world average of 459 gCO2/kWh. With around 500gCO2/kWh, the carbon intensity of Proof-of-Work-based assets is worse than average, as cheap electricity sources nowadays include natural gas and subsidized coal power. None of the assets have a carbon intensity below 300 gCO2/kWh.

82%

Of the analysed assets rely on a consensus mechanism that does not exceed 10GWh of annual consumption.

88%

Of the annual electricity demand of the analysed assets can be attributed to Bitcoin. Compared to 90% in July 2023.

Source: CCData | Click on the chart to interact with the data

DIFFERENCES IN THE MAGNITUDE OF ELECTRICITY CONSUMPTION REMAIN STRIKING.

The environmental concerns regarding the electricity intensity of digital assets remain central, with Bitcoin consuming more than 100 TWh per year in total and around 200 GWh per million US dollars of market cap. 33 assets that rely on a consensus mechanism with low electricity consumption consume at least 10,000 times less electricity than Bitcoin. 14 of these assets consume only less than 1 kWh per million US dollars of market cap.

65%

Of the analysed assets have a carbon intensity of electricity usage that is lower than the current global average of 460 gCO₂/kWh. Compared to 62.5% in July-23.

32.5%

Of the analysed assets consume less than 1kWh per $1m of market capitalisation.

Source: CCData | Click on the chart to interact with the data

22.5%

Of the analysed assets provide comprehensive and high-quality disclosures regarding their sustainability performance.

MORE TRANSPARENCY ON THE SUSTAINABILITY PERFORMANCE OF DIGITAL ASSETS IS REQUIRED.

Comprehensive and high-quality information on the sustainability performance is available for only 9 of the top 40 assets. There is a need for more disclosure, including detailed methodology descriptions, third-party audits, and access to live data.