Top Blockchain Stocks to Invest in 2024

1. Introduction

Ever since its breakthrough occurred in the late 2010s, blockchain has become a known and reputed technology for its wide-spanning, varying applications in numerous industries, such as retail, education, real estate, finance and banking, etc. It is more than just the distributed ledger technology behind Bitcoin and other similar cryptocurrencies in the market; it is a whole new way of being itself.

And if statistics are to be believed, then blockchain technology has no way to go but upwards in the coming years as well. Renowned data platform Statista has predicted that worldwide spending on blockchain solutions and blockchain services will reach north of $19 billion by the end of 2024, and another platform, Gartner, has estimated that blockchain development will generate a business value that can reach a market cap of $3.1 trillion by 2030, with blockchain systems being a part of 20-30% of our regular workforce infrastructure.

With such a massive blockchain innovation revolution on the horizon of our everyday lives, it is a smart choice to cash in on the trend early on so that you can earn the right returns at the right peak time. Which is why in this blog, we will be discussing the top Blockchain stocks that you can invest in in 2024 to gain a hefty amount as a return. For stock market enthusiasts and blockchain developers alike, this is going to be a necessary read to capitalize on the blockchain trends quickly gaining pace, so let’s dive in!

2. What is Blockchain? - A Thorough Understanding

If you are interested in blockchain technology stocks, then it is naturally important to first understand what blockchain actually is and why it’s such a big deal. To define it technically, blockchain is a decentralized, distributed ledger system where records are stored in a secure and transparent manner.

To compare it with a real world system and use case, think of a bank. A bank keeps track of all user transactions and payment records on a private, centralized server which are accessible by only the concerned centralized authorities of the bank. Comparatively, what makes blockchain stand out is that it's an unchangeable public ledger which cannot be modified, thereby protecting user information and records anonymously.

2.1. Popular Use Cases of Blockchain by Industry

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As we mentioned earlier, blockchain’s use cases span far and wide beyond just cryptocurrencies like Bitcoin. Here are some noted blockchain industry applications:

2.1.1. Finance: 

Blockchain has left a strong mark particularly in the finance industry by introducing the concept of decentralized finance, or DeFi. This DeFi trend represents a shift from traditional, centralized forms of financial handling such as banks and private organizations to a decentralized, peer-to-peer financial system where users have complete reign over their finances. The decentralized technologies for DeFi, built on the Ethereum blockchain network, are recognized for setting a whole new high standard for financial access, opportunity, and trust.

2.1.2. Healthcare: 

Blockchain-based healthcare systems utilize its secure and transparent record-keeping capabilities, powered by a distributed ledger, for more efficient medical data management and medical supply tracking. This implementation and melding of blockchain technology with healthcare has led to more personalized treatment plans, rapid advancements in new medical discoveries, and greater control over the authenticity of the drugs circulating the global markets.

2.1.3. Insurance: 

Traditional insurance claims have always been prone to claims of fraud and theft. Additionally, claim assessment processes are historically infamous for taking long, extended periods of time with no sizable return. Where blockchain comes in as a savior for insurance processes is that it streamlines insurance claims data verification, claims processing, and premium disbursement, thereby saving a lot of time and helping overcome the infamy of insurance processes taking a lot of time.

2.1.4. Media and Entertainment: 

The biggest threat facing the media industry today, other than AI of course, is piracy. Not that it’s a new threat, piracy has been an itch in the back for entertainment producers since decades, but even now, piracy can incur up to $71 billion in worldwide losses. To save their pockets from thinning out early, many media and entertainment industry heads have started to turn to blockchain technology to protect their content from piracy by tracking its life-cycle from inception to beyond. This helps producers keep track of whether their content is being distributed through malpractices or not.

2.1.5. Real Estate: 

By introducing new concepts such as fractional ownership and providing key benefits such as increased liquidity and greater access to global markets, blockchain has revolutionized real estate significantly. Blockchain real estate tokenization is a key use case that has become very popular as an example of how blockchain has enabled the digitization of assets and other financial instruments.

2.2. Blockchain Features and Benefits: What Makes Blockchain Compelling and Unique?

2.2.1. Decentralized Infrastructure: 

Blockchain’s decentralized infrastructure, with its distributed ledger technology, enables the exchange of data and information in an ecosystem and network of businesses and organizations where no central authority is in control; everyone has equal ownership and responsibility. 

2.2.2. Reduced Costs: 

Blockchain improves the efficiency and effectiveness of several manual tasks such as the aggregation of data or processing of insurance claims as we mentioned earlier. This helps many businesses save time and cut down on costs severely, thanks to reduced labor and manual effort.

2.2.3. Enhanced Visibility and Traceability: 

Blockchain’s inherent capabilities as a decentralized system means that it can trace and track the origins of a variety of items, providing a complete and thorough walkthrough of that item’s life-cycle, from its creation to its delivery. This helps manufacturers and supply chain managers keep track of their material and ensure authenticity.

2.2.4. Autonomy over Individual Data: 

Blockchain systems give its entities the ability to decide for themselves which data they want to share, who they want to share it with, and for how long they want to keep sharing that particular data. The limits over sharing this data and information is decided by the reinforcement of smart contracts.

2.2.5. Improved Security and Privacy: 

What blockchain technology essentially does is that it creates an unalterable record of transactions with end-to-end encryption. This makes sure that the transactions or any of its residual data cannot be modified by any intermediary or third-party, which blockchain’s decentralized nature removes from the processes altogether. The end-to-end encryption and protection of data from external sources reduces fraud significantly and restricts any kind of unauthorized activity thanks to greater user control over granular information.

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3. The Criteria We Used To Shortlist Top Blockchain Stocks in 2024

The special blockchain development companies we chose as part of our list of the best blockchain stocks to invest in 2024 were chosen for satisfying the following criteria with flying colors:

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Here is what each individual criteria represents:

3.1. Financial Performance (30%): 

Evaluates the revenue growth, profitability, and financial stability of the company, including metrics like earnings per share (EPS) and return on equity.

3.2.  Blockchain Integration (25%): 

Assesses the extent to which the company is leveraging blockchain technology in its operations, services, or products, and its role in driving blockchain innovation.

3.3. Market Potential (20%): 

Reviews the market position and potential for growth within the blockchain sector, considering competitive edge and future scalability.

3.4. Partnerships & Adoption (10%): 

Measures strategic partnerships and the adoption rate of blockchain solutions offered by the company. High adoption rates often indicate future growth.

3.5. Regulatory Environment (10%): 

Considers how the regulatory environment might impact the company's blockchain initiatives, including potential risks or advantages due to compliance.

3.6.  Management & Leadership (5%): 

Evaluates the quality and vision of the management team, their expertise in blockchain technology, and leadership in driving the company forward.

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4. Our Picks for the Top Blockchain Stocks in 2024

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If you are looking to make some sizable blockchain investments with high returns, here are the best blockchain stocks to look at.

In this section, we will elaborate on the blockchain companies we selected for having the most profitable and valuable blockchain technology stocks investments:

4.1. IBM

Blockchain Stock Price: $233.50

IBM, the global tech magnate, has recently made some big moves in the blockchain development industry to become a leading force in blockchain investments. They have done so by providing transformative, groundbreaking blockchain solutions for a variety of high-valued, powerful clients, most notably: Home Depot, Renault, and Albertsons.

IBM Blockchain, the company division dedicated solely to blockchain technology, has prioritized its focus on helping customers build more efficient and dependable supply chains powered by blockchain.

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4.2. MasterCard

Blockchain Stock Price: $501.20

There has been a recent trend driving towards a majorly cashless economy where most payments will be done through the internet. A popular example of this trend is the Indian economy’s push towards their home-grown technological revolution, UPI. Short for Unified Payments Interface, UPI is an instant real-time payment system that allows users to transfer money between bank accounts, pay merchants, and make bill payments. India has clearly grown quite fond of UPI-based payments, with the total volume of UPI transactions reaching a whopping 84 billion in 2023, and the projected transaction volume by 2028 estimated to reach 456 billion.

Naturally, a trend towards a cashless economy would lead to increasing debit and credit card transactions, which can greatly benefit a company like MasterCard, which can then in turn utilize blockchain technology to enhance the process of a cashless money transfer across borders.

Reportedly, MasterCard is also planning to get into joint partnerships and collaborations with blockchain development companies to form a Crypto Card partner program and launch crypto-funded MasterCard payment cards.

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4.3. GlobalX Blockchain ETF

Blockchain Stock Price: $45.98

Even beyond traditional stock investments, blockchain technology can be a profitable investment through exchange-traded funds (ETFs) such as GlobalX Blockchain ETF, which were designed and launched in 2021 with the idea of allowing investors to gain exposure to a whole new range of blockchain stocks with just a single stock investment.

With a customer expense ratio of merely 0.50% of all assets, GlobalX Blockchain ETF invests your money in 25 different blockchain companies, which also include some highly-profitable organizations not listed on the U.S. stock exchange. For eager investors who believe in blockchain’s long-term potential and are willing to make the long wait to see their blockchain stock investment come to fruition in glorious and magnanimous quantities, ETFs such as GlobalX Blockchain ETF are the way to go.

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4.4. Amazon

Blockchain Stock Price: $189.03

We all know Amazon. Who doesn’t know Amazon? When you’re the world’s biggest e-commerce platform with a market cap of over $1 trillion dollars, you are kind of impossible to ignore. Additionally, Amazon also leads the way in the cloud computing IaaS market, with their cloud infrastructure service, Amazon Web Services, or AWS for short, also topping the lists of the best cloud providers in the world.

So with their dominance established in both e-commerce and cloud computing, Amazon has now set their sights on blockchain as well, with their IaaS platform AWS offering a special blockchain development solution known as Amazon Managed Blockchain, which allows customers to create and manage their own blockchain networks.

But that’s just the beginning for Amazon and its implementation of blockchain technology, because with how useful blockchain’s features and benefits are for the retail industry, it’s no doubt that Amazon has also planned to eventually incorporate blockchain technology into their e-commerce services, thereby increasing the contribution of blockchain to Amazon’s revenue.

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4.5. Block

Blockchain Stock Price: $70.12

Block, a highly-popular fintech company, also formerly known as Square, has gained popularity as a company stock with blockchain technology in many ways. Its personal financial platform, known as Cash App, plays a significant part in the company’s overall business model and profits by allowing its users to buy and sell Bitcoin quickly and easily, leading to over $10 billion in Bitcoin purchases from the platform in 2021 alone.

Additionally, with its name change from Square to Block, its new home-grown team of blockchain developers, as well as its brand new open-developer platform for blockchain applications known as TBD, all of these factors represent a growing trend within the company to move towards blockchain development, thereby representing its feasibility as a blockchain stock and investment.

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5. Comparing Our Picks for the Top Blockchain Companies to Invest in 2024

In this section, we will be comparing the companies we chose as part of our list of the best blockchain technology stocks in 2024, and if you have noticed thus far, you will observe that all of our picks are renowned, established companies in their respective tech domains.

This is because blockchain is still a growing trend in the financial culture, and for guaranteed high returns on your blockchain investments, it is preferable to opt for blockchain companies which not only have greater word-of-mouth popularity and brand, but also other sources of profitable businesses besides blockchain technology and blockchain development, so that in the worst case scenario of blockchain fading out of the public consciousness and popularity, your stock investment in the company still remains valuable one way or the other.

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6. FAQs (Frequently Asked Questions)

6.1. What is blockchain and how does it work?

Blockchain is a decentralized digital ledger that records transactions across multiple computers in a way that ensures data integrity and security. Each transaction is stored in a block, and these blocks are linked in chronological order, forming a chain. This distributed system prevents tampering, as any change to one block requires changes to all subsequent blocks across all participants, ensuring transparency and trust.

6.2. What are the different features and benefits of blockchain technology?

Blockchain technology offers features such as decentralization, immutability, transparency, and enhanced security. Its benefits include reducing fraud, improving traceability, increasing efficiency in data management, and enabling peer-to-peer transactions without intermediaries. Blockchain's secure and transparent nature makes it ideal for industries needing reliable records, such as finance, supply chain, and healthcare.

6.3. What are the varied use cases of blockchain development by industry and application?

Blockchain development has numerous use cases across industries. In finance, it enables secure and efficient transactions, including cross-border payments and cryptocurrency exchanges. In supply chain management, blockchain technology improves transparency and traceability. Healthcare uses blockchain development for secure patient data management, while real estate benefits from its ability to simplify property transfers. Other sectors like government, gaming, and energy are also leveraging blockchain technology for enhanced efficiency and trust.

6.4. What are some of the best blockchain stocks to invest in in 2024?

Top blockchain investments to consider in 2024 include IBM, known for its blockchain development solutions in supply chain management; MasterCard, leveraging blockchain technology for cross-border payments and crypto card partnerships; GlobalX Blockchain ETF, which provides exposure to over 25 blockchain companies; Amazon, with its blockchain development services through AWS; and Block, involved in Bitcoin trading via Cash App and blockchain development through its TBD platform.

6.5. What are the factors and criteria one must keep in mind when choosing blockchain companies to invest in?

When selecting blockchain companies to invest in, key factors to consider include the blockchain company's financial performance, the extent of blockchain integration in their operations, market potential within the blockchain development industry, strategic partnerships with other blockchain development companies, adoption rate of blockchain solutions, and the regulatory environment. Evaluating management expertise and the leadership team’s vision for blockchain technology is also crucial for making informed investment decisions.

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