Polygon: Can eliminate 99.1% of carbon emissions due to ethereum POW
Polygon [MATIC] previously revealed in April 2022 that it is working to reduce the carbon footprint generated by its network. According to the company, achieving the goal of being carbon negative is a key element of the "Green Manifesto".
In a new turn of events, Polygon may have Ethereum [ETH] Merge to thank. The latest blog released by the company describes Merge as an indirect contributor to said mission. Based on the details, Consolidation will enable Polygon to eliminate 60,000 tons of carbon emissions.
What happens after that?
The initial conclusion did not come from Polygon itself but from the Cryptocurrency Carbon Rating Institute (CCRI). According to the organization, Ethereum's goal of reducing its energy consumption has a direct effect on the Polygon network. The research firm points out that Polygon is built on top of the Ethereum network while acting as a second layer (L2) Proof-of-Stake (PoS) blockchain as the main reason for its conclusion.
As of August 1, Polygon's carbon footprint is 60,903 tonnes of carbon dioxide equivalent. This represents 0.48% of all Ethereum emissions.
The report also mentions how much current the Polygon network requires. It notes that the network requires ten times more power to operate at full scale but with the upcoming consolidation, there will be a trade-off.
According to Polygon, once Ethereum's energy declines, its underlying carbon footprint will follow. In addition, the delisting will make Polygon one of the cleanest and greenest ecosystems among L2 blockchains. Furthermore, Polygon states,
“Consolidation is estimated to eliminate 99.91% of carbon emissions in Polygon's network, reducing the total annual output to just 56.22 tCO2e. That footprint, a fraction of Polygon's closest competitors, would make the chain one of the greenest in Web3.”
How about MATIC?
Although there is hardly any mention of its native token, MATIC, on-chain data shows that data development activity has skyrocketed since the beginning of September.
On day one. of the month, it is 6.44. Fast forward to the time of this writing, development activity has grown to 10 according to Santiment.
This increase is also followed by an increase in volume. Even though the price fell 9.98% to $0.80, volume still increased 33.24% to $601.62 million.
Therefore, MATIC investors can be filled with hope that the reduction in emissions could positively impact its price.
However, the short-term momentum seems to think otherwise. At the time of writing, the Directional Movement Index (DMI) shows a bearish move accompanied by a strong Average Directional Index (ADX).
Sep 07, 2022