Cardano Sets Benchmark for Sustainability as EU’s MiCA Crypto Regs Loom

Cardano Sets Benchmark for Sustainability as EU's MiCA Crypto Regs Loom

The Cardano Foundation, the governing body behind the ADA cryptocurrency, has taken a proactive step towards compliance with upcoming European Union regulations. On July 2nd, they released a report outlining sustainability indicators for the Cardano network, aligning with the Markets in Crypto-Assets (MiCA) framework.

Cardano Embraces Transparency: MiCA-Compliant Sustainability Report

The report, developed in partnership with the Crypto Carbon Ratings Institute (CCRI), emphasizes Cardano’s energy efficiency. It highlights the use of a proof-of-stake consensus mechanism, which consumes significantly less power compared to traditional proof-of-work protocols employed by Bitcoin.

The report offers a detailed breakdown of the Cardano network’s environmental impact, including total annualized electricity consumption, carbon footprint, and marginal power demand per transaction. These metrics are presented in accordance with draft regulatory technical standards set by the European Securities and Markets Authority (ESMA).

Cardano Foundation Leads the Way for Sustainable Crypto

“By developing MiCA-compliant sustainability indicators, we want to both ensure adherence to the upcoming EU regulations and set a benchmark for the industry,” said Frederik Gregaard, CEO of the Cardano Foundation. He emphasized the importance of transparency and building trust with regulators and investors as the crypto market matures.

This initiative showcases Cardano’s commitment to addressing environmental concerns (ESG) within the blockchain space. Gregaard believes it demonstrates how blockchain technology can be sustainable and efficient.

Cardano Price on the Rise as Hard Fork Nears

While the focus remains on sustainability, Cardano’s ADA token is also experiencing a positive price trend. ADA prices climbed 2.3% in the last 24 hours, reaching around $0.408. This surge comes just days before the highly anticipated Cardano Chang hard fork.

ADA/USD Technical Analysis Suggests Potential Breakout

Analysts predict a possible breakout for ADA, with some suggesting a rally towards $0.82. This prediction is based on a recent breakout from a falling wedge pattern and growing bullish momentum. However, confirmation of the breakout will depend on ADA’s ability to hold key resistance levels.

Community Enthusiastic About Chang Hard Fork

The Cardano community is abuzz with excitement surrounding the upcoming hard fork. The Chang hard fork aims to enhance decentralization within the Cardano network and unlock 1.5 billion ADA through a DAO-style voting system. This development, coupled with the positive price movement, suggests a strong outlook for Cardano’s future.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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