Ethereum
3 Crypto Stocks to Watch as Ethereum Brings Dencun Upgrade
While the price of Bitcoin (BTC) has recently reached uncharted territories, Ethereum (ETH) has also quickly launched in 2024. The price of ETH is hovering around the $3,900 mark, after rising by 70.7% since the start of the year in March. 8. Ethereum, which is behind Bitcoin in the crypto world, is known for its use as a decentralized and open blockchain-powered software platform.
After completing the Shanghai Upgrade in 2023, Ethereum has made sure to transition its blockchain validation system from proof-of-work to proof-of-stake. Under the proof-of-stake system, Ethereum miners will rely on Ether holders who will act as validators, thus giving more assurance to the system. Essentially, proof of stake allows Ether holders to lock up their funds as collateral to validate transactions and create new blocks, reducing the need for extensive calculations and energy consumption. The result was much stricter trading and the amount of Ether locked increased significantly.
New institutional investments have also provided a huge boost, with traditional financial giants following up their successful BTC spot ETF offerings with those of ETH.
However, the latest upgrade to its systems will be a game-changer and could see the stock climb well above its all-time high of $4,400 seen in May 2020. The Dencun upgrade of the ETH blockchain, planned for the March 13, would be a major step in enabling the network to function as a suitable database for layer 2 blockchains to store data more efficiently. Additionally, it will make transactions cheaper on these blockchains and boost demand from traditional consumers.
Analysts around the world have speculated that with Bitcoin reaching the heights it is currently reaching, Ether will only follow the momentum of ETH upgrades and applications and hit its all-time high soon. In fact, it could surpass the $10,000 mark before the end of the year.
So, with Ethereum already starting to benefit from market conditions, it might be prudent to monitor stocks with exposure to this decentralized and open source blockchain platform. Here is a selection. These currently carry a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Digital Holdings, Inc. MARA: This digital asset technology company mines digital assets and focuses on Bitcoin and Ethereum.
Marathon Digital’s expected earnings growth rate for next year is 238.1%. The Zacks Consensus Estimate for its current year’s earnings has jumped 450% over the past 60 days. Marathon Digital currently carries a Zacks Rank #3.
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CME Group inc. CME: This company operates as one of the largest futures exchanges in the world and offers a wide range of derivatives contracts and various solutions for investing in cryptocurrencies like Ethereum.
CME Group’s expected profit growth rate for the current year is 2.8%. The Zacks Consensus Estimate for its current year’s earnings has improved 1.3% over the past 60 days. CME Group currently holds a Zacks Rank #3.
BlackRock, Inc. BLK: This public company, which is one of the largest investment managers in the world and one of the first traditional market companies to join the Bitcoin ETF race in June 2023 and approved it in January, is already entered the ETH fray by applying. for spot ETFs.
BlackRock’s expected earnings growth rate for the current year is 5.2%. The Zacks Consensus Estimate for its current year’s earnings has improved 3.7% over the past 60 days. BlackRock currently carries a Zacks Rank #3.
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