Three Promising Stocks to Invest in the Evolving Blockchain Landscape
Despite the rise of other captivating themes, such as artificial intelligence, blockchain and cryptocurrency technologies, which peaked in popularity around 2021, are poised for a potential resurgence. This is even more relevant as Bitcoin’s (USD-BTC) value has seen an impressive 84% increase over the last year, hinting at sustained growth in 2024.
In this context, several underappreciated tech companies actively involved in the cryptocurrency sector are worth a closer look. Let’s delve into three stocks to invest that stand out in 2024.
Coinbase (COIN)
Coinbase (NASDAQ:COIN), valued at $29.85 billion, experienced a significant decline of over 20% at the start of 2024. This downturn followed a remarkable surge in the last quarter of 2023. The recent decline appears more like a natural market correction, especially in light of Bitcoin’s ongoing strength.
Coinbase’s ongoing legal engagement with the SEC adds to the stock’s volatility, making it an appealing choice for short-term traders. Despite this, Coinbase’s long-term value remains strong, particularly if Bitcoin continues its upward trajectory in 2024.
Wall Street analysts display mixed opinions on COIN, with a balanced distribution of overweight and underweight ratings. It may be prudent to adopt a cautious approach with COIN, waiting for the current negative trend to ease before investing in this leading cryptocurrency platform.
Riot Platforms (RIOT)
Riot Platforms (NASDAQ:RIOT) stands as a high-risk, high-reward investment in the cryptocurrency sector. Despite a challenging start to 2024 with a 33% decrease, the stock still shows a 66% increase over the past year. As a crypto mining company, RIOT’s performance is closely tied to the fluctuations in the cryptocurrency market, making it a choice for the more adventurous investor.
Riot’s significant market cap, exceeding $2 billion, and its efficiency in Bitcoin mining set it apart. For those interested in the dynamic world of cryptocurrency mining, RIOT is a compelling, albeit risky, option to consider.
PayPal (PYPL)
PayPal (NASDAQ:PYPL), once a top-performing tech stock, has faced a prolonged downturn over the last two and a half years. The company’s recent foray into the cryptocurrency market is part of its ambitious efforts to reclaim its former prominence. PayPal’s CEO, Alex Chriss, expressed confidence in the company’s transformative strategies during a CNBC interview.
Despite the recent downgrades, PayPal’s venture into cryptocurrency might be an overlooked opportunity by analysts. For investors open to embracing companies taking bold steps in the crypto space, PYPL presents an intriguing option.
In summary, as the blockchain technology sector continues to evolve, Coinbase, Riot Platforms, and PayPal represent three diverse investment opportunities, each with its unique risk-reward profile.
