the price of Ethereum jumped 10% and recovered to its highest level in two months since cryptocurrency it has been announced that test work is underway to use it a coin more efficiently.
This move, planned for September, will lead to the transfer of digital assets from the so-called proof-of-work mechanism to the proof-of-stake mechanism, which consumes less energy and will make the use of the coin much cheaper.
The announcement sparked enthusiasm among environmentally conscious investors as pressure mounts on them crypto the world to strengthen it ESG credentials, amid a jump in energy prices, which has led to a sharp rise in crypto mining costs.
In July, the US firm Compass Mining was forced to lay off 15% of its workforcee and cut executive pay by 50% as part of a cost-cutting package to “recalibrate” due to the “recent market downturn and expected future market conditions.”
Global Bitcoin mining, which continues to use an energy-intensive proof-of-work mechanism, consumes more electricity than the entire population of Argentina, accumulating roughly 150 terawatt-hours a year, according to Cambridge University estimates.
Last year, Tesla boss Elon Musk announced he would stop accepting bitcoins as payment after the billionaire said mining the coin was consuming too much fossil fuel-generated electricity. Musk has since expressed his support for the use of Dogecoin.
Despite the gains, the price of Ethereum remains 45% lower than at the beginning of the year. Its total market capitalization is £187 billion, well below its peak of £450 billion in November 2021.