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The 3 Most Undervalued Blockchain Stocks to Buy in May 2024
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Investing in the realm of blockchain and cryptocurrencies presents a spectrum of opportunities, each with its own unique risk-reward dynamics. By investing directly in cryptocurrencies such as Bitcoin (BTC-USD) exposes investors to the inherent volatility of these digital assets, exploring blockchain stocks offers a distinct approach that could potentially amplify returns while introducing a different set of considerations. Investing in undervalued blockchain stocks can be viewed as a form of synthetic leverage, offering the potential to amplify both gains and losses for investors.
This approach takes advantage of the underlying growth and momentum of the blockchain and cryptocurrency sectors, while allowing investors to diversify their exposure across multiple companies and business models.
So, with the market experiencing tremendous volatility following Bitcoin’s halving event, here are three of the most undervalued blockchain stocks that investors should keep on their radars for the rest of the year.
Currency base (COIN)
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Global Coinbase (NASDAQ:CURRENCY) is a leading cryptocurrency trading platform that directly benefits from the growth of blockchain technology. COIN is my number one growth stock for this year, making it one of those undervalued blockchain stocks for investors to consider.
The downside is that cryptocurrency market volatility, which significantly impacts COIN’s performance, continues to pose a risk. Furthermore, analysts expressed concerns about the potential minimal impact on revenue from spot Bitcoin ETFs, of which COIN is a key custodian.
My opinion, however, is that the market’s rapid ups and downs will keep traders glued to their screens, as that is what both makes and destroys fortunes. More time spent on the Coinbase app and platform naturally leads to higher trading fees and related purchases.
COIN also aims to improve its platform integrate multiple blockchain and cryptographic technologiesfocusing on areas such as modular blockchains and layer 2 scaling solutions.
Mastercard (MA)
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MasterCard (NYSE:BUT) has integrated blockchain technology into its payment processing solutions.
I like MA because it gives investors exposure to a blue-chip company that has crypto and blockchain technology as an advantage for growth instead of being totally dependent on it.
Mastercard is testing the former payment card powered by blockchain in collaboration with MetaMask, which represents a significant step towards integrating cryptocurrency with conventional payment systems. This card will allow users to make everyday purchases using their cryptocurrency at any location where traditional cards are accepted.
Mastercard has also launched a new path within its global network of Engage partners. This expansion is designed to accelerate the development and deployment of Web3 and blockchain-based products. The Engage network helps connect various stakeholders in the blockchain space.
BUT it is slightly overlooked in favor of Visa (NYSE:V). However, I think its blockchain technology is what sets it apart and also makes it one of those underrated blockchain stocks to buy.
International Business Machines (IBM)
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International Business Machines (NYSE:IBM) focuses on cloud-based solutions that incorporate blockchain technologies.
I’ve already expressed my opinion on IBM and it’s worth repeating: IBM can serve the role of a low-volatility technology stock in a conservative investor’s portfolio. Its stability is also complemented by its status as a dividend aristocrat and the quality of its revenues from large corporate clients.
I think IBM can be considered undervalued if you keep that specific need in mind. It may also be undervalued thanks to its efforts in blockchain.
In 2024, IBM is partnering with Casper Labs for develop blockchain-based solutions specifically designed to improve the transparency and auditability of generative AI systems. This partnership aims to address the challenges of monitoring and managing AI systems by using blockchain to track and verify changes in AI models and data across organizations.
IBM is also working on traceability solutions for supply chain management and secure, scalable platforms for digital transactions. These solutions are based on Hyperledger Fabric, an open source blockchain framework.
As of the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Opinions expressed are those of the writer, subject to InvestorPlace.com Guidelines for publication.
Matthew began writing about financial markets during the cryptocurrency boom of 2017 and has also been a team member at several fintech startups. He then began writing about Australian and US stocks for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and New Scientist magazine, among others.