Recently, the European Union has developed a number of regulations to bring sanity to the cryptocurrency market. The regulations also give an idea of how cryptocurrency regulations might go globally. They also offer an idea of the best cryptocurrencies to buy going into the future.
One of the critical aspects of the regulations is that cryptocurrencies will be required to declare their carbon footprint. This is an indicator that going forward; the EU will be more supportive of environmentally friendly cryptocurrencies.
From an investor’s perspective, this is also an indicator of the type of cryptocurrencies that are likely to find more favor with investors in the future. Below are the top-tier cryptocurrencies to keep an eye on after EU regulations.
One of the main reasons why Cardano (ADA) has become a thing in the first place is to address the environmental costs of Proof-of-Work cryptocurrencies like Bitcoin and Ethereum. As such, it is perfectly in line with new EU regulations. That said, Cardano is much more than just an environmentally friendly cryptocurrency.
Cardano is also one of the most technologically advanced cryptocurrencies. Its Ouroboros Proof-of-Stake algorithm is one of the best because it achieves a perfect balance between security, decentralization and scalability.
In addition, Cardano has gained significantly in adoption. For example, in places like Ethiopia and Rwanda, the Cardano blockchain is already being used to simplify government systems. Since it is in developing countries that such systems are most needed, Cardano is on the right track for value adoption and growth.
That’s why it stands out as the best cryptocurrency to look at now, even though the bear cryptocurrency market persists.
For years, Ethereum (ETH) has been harmful to the environment since it uses a Proof-of-Work algorithm. However, since 2020, it has switched to Proof-of-Stake, in what is popularly known as Ethereum 2.0.
Ethereum has made great strides on this front, and a testnet merger of Ethereum and Ethereum 2.0 is complete. It is widely expected that in a month or so, Ethereum will function as Ethereum 2.0 and will only use a small percentage of the energy it was using when it worked as a Proof-of-Work.
In addition to being in line with the new EU guidelines, there are many other reasons why Ethereum looks attractive as an investment. One of them is security. In the altcoin market, Ethereum is easily the most secure and decentralized. After the events of recent months, where some cryptocurrencies have collapsed, Ethereum’s security is likely to see it attract more investors in the EU and abroad.