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2 Stocks to Watch as Ethereum Shows Promise for 2024
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While Bitcoin (BTC) has had a great 2023, so has Ethereum (ETH), the second-most traded and recognizable crypto coin in the world. Ethereum is known for its uses as a blockchain-powered, open-ended decentralized software platform and has risen 89.4% in value as of date in 2023.
The crypto behemoth has paved its path to winning over new customers by making a significant update this year, known as the Shanghai Upgrade. Under this upgrade, ETH shifted its blockchain validation system from proof-of-work to proof-of-stake and marked one of the most significant developments in the relatively short history of cryptocurrency.
In the proof-of-stake system, miners of Ethereum will rely on Ether holders, who will act as validators, thus lending more assurance to the system. In essence, proof-of-stake allows holders of Ether to lock up their funds as collateral to validate transactions and create new blocks, reducing the need for extensive computation and energy consumption.
Powered by this development and what promises to be a significant 2024 for cryptocurrency, analysts around the world have turned bullish on it. There is a consensus that ETH might outperform BTC in 2024 with regard to growth rate and will gain more market share based on its proposals to reduce transaction costs and boost the number of transactions per second. In fact, its planned upgrade, called EIP-4844, might ensure that transaction costs could fall to as low as $0.01.
Per Bitwise Asset Management, the world's largest crypto index fund manager, ETH revenues could double from 2023, up to $5 billion in 2024. Also, a state of fast-rising interest rates has not proven conducive to the crypto market. However, with markets widely betting on rate hikes having come to an end and the first rate cut as early as first-quarter 2024, the crisis for crypto may have been averted.
Ethereum has already started to make good of the state of the market, and it might be prudent to keep a watch on stocks exposed to this open-source, decentralized blockchain platform. Here is a selection of two stocks that we believe should be tracked. These currently carry a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Accenture plc (ACN - Free Report) : This global system integrator that provides consulting, technology and other services markets Ethereum-based blockchain solutions to businesses to make it easier to process payments.
Accenture’s expected earnings growth rate for the current year is 4.6%. The Zacks Consensus Estimate for its current-year earnings has improved by 0.1% over the past 60 days. ACN currently carries a Zacks Rank #2.
CME Group Inc. (CME - Free Report) : This company operates as one of the world's largest futures exchange, offers a wide range of derivatives contracts and provides various solutions to invest in cryptocurrencies like Ethereum.
CME Group’s expected earnings growth rate for the current year is 14.7%. The Zacks Consensus Estimate for its current-year earnings has improved by 0.6% over the past 60 days. CME currently carries a Zacks Rank #3.
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2 Stocks to Watch as Ethereum Shows Promise for 2024
While Bitcoin (BTC) has had a great 2023, so has Ethereum (ETH), the second-most traded and recognizable crypto coin in the world. Ethereum is known for its uses as a blockchain-powered, open-ended decentralized software platform and has risen 89.4% in value as of date in 2023.
The crypto behemoth has paved its path to winning over new customers by making a significant update this year, known as the Shanghai Upgrade. Under this upgrade, ETH shifted its blockchain validation system from proof-of-work to proof-of-stake and marked one of the most significant developments in the relatively short history of cryptocurrency.
In the proof-of-stake system, miners of Ethereum will rely on Ether holders, who will act as validators, thus lending more assurance to the system. In essence, proof-of-stake allows holders of Ether to lock up their funds as collateral to validate transactions and create new blocks, reducing the need for extensive computation and energy consumption.
Powered by this development and what promises to be a significant 2024 for cryptocurrency, analysts around the world have turned bullish on it. There is a consensus that ETH might outperform BTC in 2024 with regard to growth rate and will gain more market share based on its proposals to reduce transaction costs and boost the number of transactions per second. In fact, its planned upgrade, called EIP-4844, might ensure that transaction costs could fall to as low as $0.01.
Per Bitwise Asset Management, the world's largest crypto index fund manager, ETH revenues could double from 2023, up to $5 billion in 2024. Also, a state of fast-rising interest rates has not proven conducive to the crypto market. However, with markets widely betting on rate hikes having come to an end and the first rate cut as early as first-quarter 2024, the crisis for crypto may have been averted.
Ethereum has already started to make good of the state of the market, and it might be prudent to keep a watch on stocks exposed to this open-source, decentralized blockchain platform. Here is a selection of two stocks that we believe should be tracked. These currently carry a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Accenture plc (ACN - Free Report) : This global system integrator that provides consulting, technology and other services markets Ethereum-based blockchain solutions to businesses to make it easier to process payments.
Accenture’s expected earnings growth rate for the current year is 4.6%. The Zacks Consensus Estimate for its current-year earnings has improved by 0.1% over the past 60 days. ACN currently carries a Zacks Rank #2.
CME Group Inc. (CME - Free Report) : This company operates as one of the world's largest futures exchange, offers a wide range of derivatives contracts and provides various solutions to invest in cryptocurrencies like Ethereum.
CME Group’s expected earnings growth rate for the current year is 14.7%. The Zacks Consensus Estimate for its current-year earnings has improved by 0.6% over the past 60 days. CME currently carries a Zacks Rank #3.