August 10, 2022

5 Top Blockchain Stocks To Watch In January 2022

Top Blockchain Stocks To Check Out This Week

Blockchain stocks have been gaining significant traction in the stock market lately. For better or worse, it is a technology that is gaining adoption among dozens of publicly traded companies. Some utilize the blockchain to supplement their existing businesses while others are capitalizing on the trend by supporting the technology. For instance, NVIDIA (NASDAQ: NVDA) is a leading manufacturer of graphics processing units (GPUs) that play a significant role in cryptocurrency mining. GPUs are important hardware components that cryptocurrency miners use to process transactions on the blockchain. 

Meanwhile, the likes of Mastercard (NYSE: MA) that benefited greatly from the ongoing trend of a cashless economy are also adopting the technology. We saw the company partnering with three leading cryptocurrency service providers in the Asia Pacific last year, to launch crypto-funded Mastercard payment cards. All in all, it would not be surprising if blockchain technology were to power modern society one day. After all, the possibilities are truly endless. Therefore, would you like some exposure to some of the top blockchain stocks in the stock market today?

Blockchain Stocks To Buy [Or Avoid] For January 2022

Block

Firstly, we will be looking at Block, formerly known as Square. Put simply, it is a tech company that focuses on financial services. It develops tools to help people access the economy through some of its building blocks that include Square, Cash App, Spiral, and TIDAL. So, sellers can leverage the company’s array of technology to run and grow their businesses. Last month, the company had its name changed to Block which suggests that it may place more emphasis and focus on blockchain technology.  

This past week, Block confirmed its plans of building a Bitcoin mining system and will be hiring a team for it. The company believes that mining goes beyond just creating new Bitcoins. It also sees the long-term value for a future that is fully decentralized and permissionless. As of now, it appears that the mining will occur “out in the open & alongside the community.”

What this implies is that Block wants anyone to have access to mining Bitcoin from home. Overall, this new initiative aligns with the company’s conviction that Bitcoin can and will be the internet’s dominant cryptocurrency. With that in mind, would you consider SQ stock a top blockchain stock to watch? 

Source: TD Ameritrade TOS

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Coinbase 

Following that, we have the financial technology company, Coinbase. In essence, the company is a provider of end-to-end financial infrastructure and technology. Its primary focus is on building a cryptoeconomy. Impressively, its growing platform already boasts more than 43 million retail users, 7,000 institutions, and 115,000 ecosystem partners in over 100 countries around the world. These statistics would make Coinbase one of the top blockchain companies in the world today.   

This past week, Coinbase said that it is buying a crypto futures exchange, FairX. This is an important step toward the company’s goals of making the derivatives market accessible to millions of customers in the U.S. FairX, which was launched last year, sells futures products and is regulated by the U.S. Commodity Futures Trading Commission (CFTC). Well, with the ability to trade crypto futures and options, institutional investors could find Coinbase more appealing. Thus, would you add COIN stock to your watchlist? 

COIN stock chart
Source: TD Ameritrade TOS

Silvergate Capital

Another top blockchain stock to consider right now would be Silvergate Capital. For those unaware, the bank is a provider of financial infrastructure solutions and services to participants in the expanding digital currency industry. Its services include commercial banking and lending, mortgage warehouse lending, and commercial business lending. The company’s Silvergate Exchange Network (SEN) is a virtually instantaneous payment network for participants in the digital currency industry. Despite the turbulence currently faced by blockchain stocks, SI stock has still risen more than 85% over the past year.  

Last month, the company and EJF Capital LLC announced the launch of the EJF Silvergate Ventures Fund. Essentially, it is a joint investment vehicle that focuses on early-stage fintech companies, digital currencies, and payments, as well as specialty finance technology. So, the kind of investment that it seeks are those that develop technologies for broad adoption in finance. Besides that, investors are also waiting for the announcement of its fourth-quarter and full-year financial results next week. With that said, would you consider adding SI stock to your portfolio ahead of its earnings report? 

SI stock chart
Source: TD Ameritrade TOS

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Shopify 

Traditionally, Shopify is renowned for being a cloud-based, multi-channel commerce platform. It offers subscription solutions and merchant solutions. So, merchants can leverage its software to run their business across all of their sales channels. Through a single view of their business and customers, it will enable them to manage their businesses while building customer relationships all from one integrated back office. However, Shopify has recently been acquainted with blockchain technology through its involvement in the sale of non-fungible tokens (NFT) on its platform. 

In December, GigLabs announced its GigLabs NFT App for the Shopify App Store. This is available for eligible Shopify Plus merchants to create and sell NFTs on their storefront. By offering its merchants an accessible approach to selling digital assets through its platform, we can see Shopify’s commitment to tapping into the growing NFT ecosystem. All things considered, is this a step in the right direction long-term for the company? If you think so, would you consider SHOP stock a top investment candidate at its current valuation?  

SHOP stock chart
Source: TD Ameritrade TOS

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CME Group

Last but not least, we have CME Group. For the uninitiated, the company is one of the leading futures and options exchanges. It offers derivative securities for stocks, foreign exchange, indexes, agricultural commodities, and many more. In fact, it is currently the only exchange that creates a market for bitcoin futures contracts. Hence, CME will likely benefit from the rising adoption of cryptocurrencies. CME stock has risen approximately 15% over the past year.

Last week, CME announced that it achieved a record international average daily volume of 5.5 million contracts in 2021. This represents an increase of 4% from 2020. Out of which, Europe, the Middle East, and Africa hit a record 4 million contracts which were driven by a strong performance in Interest Rate and Agricultural products. Overall in 2021, market conditions created an increasing need for risk management around the world as clients worldwide continue to navigate around the constant volatility and uncertainties. Given these factors, should you be keeping a close tab on CME stock?

CME stock chart
Source: TD Ameritrade TOS

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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