Ethereum on the rise as cryptocurrency takes steps towards a greener future

Cryptocurrency Ethereum is recovering after upgrading the digital currency network, making it more environmentally friendly.

At the time of publication, an ether (the token used by the Ethereum network) was worth $ 4,252.

Less than a month ago, an ether was worth a staggering 42 percent less at USD 2,434.

Ethereum is beginning to revert to its previous highs after a hard fork in London. (Ethereumpreis.org)

If you had bought $ 1,000 of Ether on July 20 – a little over 21 days ago – you would have received more than half of your money back by now.

The cryptocurrency hit its highest ever price in early May this year, where it settled just a dollar below the AUD 5000 mark.

Simon Peters, market analyst and cryptocurrency expert at eToro, said Ethereum is making strides to become “greener” as a major criticism of Bitcoin is the amount of electricity used to mine coins.

A man uses the Ethereum ATM in Hong Kong. (AP)

“On Thursday, the Ethereum hard fork finally took place in London, and the creator of the crypto asset, Vitalik Buterin, welcomed the moment as a step to make it more energy efficient,” said Peters.

“The hard fork is the largest single upgrade to the Ethereum network since 2015 and has a significant impact on the fees for the blockchain – the so-called ‘gas’ fees.

“But according to founder Buterin, it has an impact on the energy efficiency of ETH. Speaking to Bloomberg News in Singapore, Buterin said that EIP-1559 could reduce emissions from the network by 99 percent.”

Founder of Ethereum Vitalik Buterin. (John Phillips / Getty Images)

Every step a cryptocurrency takes towards being greener is likely to drive up its price.

“Cryptoassets like ETH and Bitcoin have recently come under fire for their high energy consumption,” said Peters.

“Tesla boss Elon Musk triggered a big sell-off in May with comments on the high emissions from the Bitcoin mining process.”

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