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3 Blockchain Stocks to Bet on for Market-Breaking Returns
Cryptocurrencies have their ups and downs, but blockchain stocks promise significant long-term returns. Blockchain is best known for powering cryptocurrency transactions, but the technology’s use cases go far beyond that.
In simpler terms, the blockchain platform allows users to store data and initiate peer-to-peer transactions. The technology has revolutionized industries such as finance and real estate by ensuring that transactions remain secure in a decentralized environment. This has created a paradigm shift in the way we own and manage data, while also redefining traditional business models.
Given the immense potential of blockchain technology, several companies are investing heavily in the space. Some have made it a core component of their day-to-day operations, while others are offering blockchain-related services. According to data from Fortune Business Insights, the global blockchain market is expected to grow from $27.84 billion in 2024 to $825.93 by 2032. This reflects a compound annual growth rate (CAGR) of 52.8% per year.
In other words, investing in companies with exposure to blockchain can be a noteworthy venture for market-beating returns. In that regard, here’s a look at three companies that are making waves in the blockchain space.
Coinbase (COIN)
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As the largest cryptocurrency exchange in the world, Monetary base (NASDAQ:CURRENCY) has a lot to gain from the growth of blockchain technology. The company initiated about 312 billion transactions in Q1 and boasts a user base of 110 million in 100 countries.
The success of its platform was evident in its recent earnings report. Coinbase beat analysts’ expectations, reporting $1.6 billion in total revenueup 72% from the previous year. Institutional trading revenue, up 133% year-over-year (YOY), drove much of this growth.
Hidden beneath the layers of its impressive financial data is Coinbase’s intriguing new venture into the blockchain arena, a platform called Base. Base is a layer 2 platform that will be built on top of Ethereum (layer 1). This second layer will track individual transactions and publish them in batches to the Ethereum network. Running transactions in batches, rather than one at a time, makes the process more cost and energy efficient.
While Base currently represents about 5% of total revenue, this new technology has the potential to improve the user experience while generating substantial returns.
If you are willing to bet on the future of blockchain, COIN is one of the best blockchain stocks on the market today.
Mastercard (MA)
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The shift to a cashless economy has been a boon for the payment processing leader MasterCard (London share:BUT). Its core business is facilitating transactions between commercial banks and financial institutions. While the emergence of blockchain technology could be seen as a potential threat to its market share, Mastercard has been quick to adopt the technology to enhance its offerings.
A key component of Mastercard’s blockchain strategy is its Multi-token network (MTN). This is a blockchain-based platform that allows users to transact digital assets safely and securely through tokenization. Tokens are essentially a virtual representation of your checking and savings accounts.
In addition to this, the network will also enable app developers to create the next generation of De-Fi apps. Several companies, including Assisted AND Mating point are already using the platform’s services. Mastercard is also actively seeking to integrate financial institutions on MTN to make the solution more attractive to app developers. After several months of beta testingThe app is now a testing ground for payment and commerce features in some countries.
Mastercard’s blockchain initiative shows a lot of long-term potential. Plus, its strong position in the payments space makes MA one of the best blockchain stocks on the market.
Block (SQ)
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Formerly known as Square, Block (London share:square) the new name is as clear a sign as any about its feelings toward blockchain. The company has invested in several Bitcoin (BTC-USD exchange rate) initiatives, supported by blockchain technology, across its ecosystem. Cash App, Block’s flagship payment platform, uses blockchain to power its crypto transactions. The platform has 57 million monthly active users and represents 60% of Block’s profits.
Some of the company’s notable initiatives in the Bitcoin space include Keya self-custodial Bitcoin wallet that will connect Cash App to Coinbase to enable cryptocurrency transactions on the app. To further its innovation in the space, Block has launched To be defined– a development platform for building decentralized apps on the blockchain. The company also plans to reinvest 10% of its BTC profits into the company.
Block’s successful ventures in blockchain and Bitcoin are underscored by its impressive financial figures. Revenue in Q1 increased by 19% year-over-year and annual profit is expected to grow 17% from the previous year.
As blockchain technology gains more and more popularity, SQ is undoubtedly one of the best blockchain stocks to buy for long-term gains.
As of the date of publication, Divya Premkumar did not have (either directly or indirectly) any position in the securities mentioned in this article. The views expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines.
As of the date of publication, the responsible editor did not hold (either directly or indirectly) any position in the securities mentioned in this article.
Divya has a background in finance and accounting and has worked in FP&A roles at Fortune 500 companies. She is an avid reader and enjoys writing on a variety of topics, including stocks, cryptocurrencies, blockchain, and global politics.