The 4 Best Blockchain Stocks (Beyond Cryptocurrency)

The rapid rise of blockchain stocks associated with public cryptocurrency-related companies is explained by market participants' hopes for the imminent approval of a Bitcoin ETF. For example, actions of Bitcoin Trust in Grayscale (OTCMKTS:GBTC) They have risen 220% since the beginning of this year, reaching $26.79, according to data from Tradingview. During the same period, the shares of NVIDIA (NASDAQ:NVDA), one of the main assets of the S&P500, showed a growth of 198%, while the index itself grew 9%.

Adopting blockchain technology, particularly in the financial sector, could provide a substantial advantage for businesses over their conventional counterparts in handling payment transactions. Additionally, brokerage firms that provide digital assets could witness greater customer attraction compared to exchanges that deal solely in traditional assets like stocks and bonds.

The rapid rise of blockchain stocks associated with public cryptocurrency-related companies is explained by market participants' hopes for the imminent approval of a Bitcoin ETF. For example, actions of Bitcoin Trust in Grayscale (OTCMKTS:GBTC) They have risen 220% since the beginning of this year, reaching $26.79, according to data from Tradingview. During the same period, the shares of NVIDIA (NASDAQ:NVDA), one of the main assets of the S&P500, showed a growth of 198%, while the index itself grew 9%.

Adopting blockchain technology, particularly in the financial sector, could provide a substantial advantage for businesses over their conventional counterparts in handling payment transactions. Additionally, brokerage firms that provide digital assets could witness greater customer attraction compared to exchanges that deal solely in traditional assets like stocks and bonds.

Block, Inc (SQ)

Block (NYSE:SQ), the fintech company led by former Twitter CEO Jack Dorsey, saw a notable rise in its stock price in the third quarter. SQ shot up 20% and surpassed $52 after a positive third quarter earnings report. Formerly known as Square, Block achieved 24% year-over-year net revenue growth, reaching $5.6 billion. This notable performance was mainly driven by Cash App, the company's flagship product. The app witnessed a 38% year-over-year increase in Bitcoin revenue, which accounted for more than 50% of the company's third-quarter net revenue, reaching $2.4 billion.

Cash App serves as a versatile mobile payment service that enables fiat transactions, Bitcoin trading, and stock investments. With $3.6 billion in revenue and $985 million in gross profits, Cash App showed substantial growth, rising 34% year-over-year.

Block's secondary payments platform, Square, reported $1.98 billion in revenue, representing an 8% year-over-year increase. Block's focus on encouraging the utilization of Bitcoin within its business ecosystem, primarily through the Block ecosystem, has the potential to establish the company as a hub for B2C cryptocurrency transactions. The integration of the Bitcoin Lightning network into Cash App in 2022 significantly simplified Bitcoin transfers, reinforcing the company's vision of a globally trusted and open money transfer network powered by Bitcoin.

Nvidia (NVDA) and Advanced micro devices (AMD)

Advanced Micro Devices (NASDAQ:amd) and NVIDIA (NASDAQ:NVDA) are prominent chipmakers that share a surprising success story within their niche markets, particularly blockchain stocks that stand out for their innovation. These industry giants specialize in creating graphics processing units (GPUs), initially hailed for their prowess in enhancing high-end video game graphics. However, these GPUs now serve a broader purpose: powering critical applications for AI, data storage, and digital currencies.

The computational demands of cryptography and blockchain development align perfectly with the capabilities of GPUs. In the past, increased interest in cryptocurrencies has led to a surge in Nvidia and AMD shares, fueled by miners seeking GPUs for creating digital assets. GPUs remain integral tools in the creation and management of cryptoassets. Notably, Nvidia introduced a dedicated line of chips designed explicitly for cryptocurrency mining, emphasizing its commitment to this burgeoning market.

Both Nvidia and AMD are strategically positioning themselves as leaders in chip technology through strategic acquisitions. While Nvidia's attempt to acquire ARM Holdings faced obstacles, AMD successfully completed its acquisition of Xilinx(NASDAQ:XLNX) in February 2022. Regardless of these acquisitions, both companies are poised to strengthen their position in the semiconductor industry, spearheading the development of emerging technologies such as blockchain ledgers.

Mastercard (MA)

MasterCard (NYSE:MOTHER), recognized in the payments industry, is now expanding its focus towards blockchain technology with the introduction of the multitoken network (MTN). This initiative aims to streamline transactions within the blockchain space, starting with the exploration of tokenized bank deposits and gradually encompassing stablecoins and central bank digital currencies.

At the core of the MTN initiative is the transformation of traditional bank deposits, providing them with the programmability and accessibility inherent to cryptoassets. This pioneering approach involves converting bank account funds into digital assets on the blockchain, mirroring functionality seen in the dynamic crypto space.

In line with the launch of MTN, Mastercard is bolstering its blockchain efforts through Crypto Credentials, a blockchain analytics tool introduced in early April. By ensuring transaction compliance with strict regulatory standards, such as anti-money laundering, this technology aims to maintain regulatory compliance. Raj Dhamodharan, head of crypto and blockchain at Mastercard, envisions multiple applications, including facilitating seamless cross-border transactions using tokenized bank deposits between institutions in different countries.

Mastercard's strategic foray into blockchain signifies a firm commitment to innovate within this landscape, with the aim of optimizing the efficiency of traditional banking structures. For those considering investing in blockchain stocks, Mastercard's initiative presents a promising opportunity. The current trading position of MA stock, trading below its analyst price target, suggests potential for substantial market expansion and solid growth in the foreseeable future.

As of the date of publication, Julia Magas did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com. Publication Guidelines.