Cambridge study confirms Ethereum's low energy use post-merge
A new Cambridge University study shows Ethereum consumes significantly less energy per dollar of market value than major rivals, offering institutional investors a clearer metric for assessing blockchain sustainability.
Ethereum consumes approximately 7.87 gigawatt-hours of electricity annually, placing it near the bottom of energy usage among major proof-of-stake networks, according to new research from the Cambridge Centre for Alternative Finance. When adjusted for market value, the network requires just 33 kilowatt-hours per $1 million. This metric makes it the second-most efficient blockchain in the study, trailing only BNB Chain.
The data highlights a stark divide among competing networks. Solana recorded the highest electricity consumption in the comparison group at 13.48 GWh per year. Its energy intensity reached roughly 283 kWh per $1 million of market value, about 8.5 times greater than Ethereum's footprint, while the networks analyzed collectively consumed around 38 GWh.
For institutional investors and asset managers, these figures provide a standardized baseline to evaluate blockchain infrastructure through an environmental, social, and governance lens. As ESG criteria increasingly dictate capital allocation, proof-of-stake networks offer a path for crypto adoption without the carbon liabilities associated with traditional mining. Policymakers also gain a more current, empirical foundation for regulating digital assets based on actual grid demands.
Cambridge derived its estimates by measuring the power draw of Ethereum nodes across 20 combinations of the network's software clients. The research counted 8,522 discoverable full nodes, with 64% operating in cloud or enterprise facilities and 36% on residential connections. A typical home setup drew about 18 watts, while professional workstations averaged 153 watts, yielding a network-wide average of 105 watts per node.
The dramatic reduction in power demand stems from Ethereum's September 2022 transition from proof-of-work to proof-of-stake, a shift that eliminated competitive mining in favor of token staking and cut the network's energy consumption by roughly 99.96%. However, the study noted that Ethereum's residual carbon footprint is now dictated by the local electricity grids powering its nodes. Currently, these grids derive 56.4% of their energy from renewable and nuclear sources, leaving 43.6% dependent on fossil fuels.
