Within this article, we will examine the 11 cryptocurrency equities with the most significant potential for growth. To explore additional companies of this nature, refer to 5 cryptocurrency stocks with the largest surge.
Last month witnessed a surge in the cryptocurrency market following a decision by a three-judge appeals panel in Washington to nullify the U.S. Securities and Exchange Commission’s ruling to block Grayscale’s attempt to convert the Grayscale Bitcoin Trust into a Bitcoin (BTC-USD) exchange-traded fund. This decision resulted in substantial gains for various cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and Binance Coin. Analysts consider this ruling to be a significant milestone for the industry. Another triumph for the cryptocurrency sector occurred when a U.S. judge ruled in favor of Ripple Labs Inc., stating that the firm did not violate federal securities law by selling XRP tokens on public exchanges.
Nevertheless, many analysts believe that the cryptocurrency industry faces a similar problem of valuations seen in traditional stock markets. Only a select few cryptocurrencies contribute to the majority of gains in the sector, while many meme coins and seemingly worthless projects litter the industry. This lack of solid underlying projects continues to create doubt and volatility within the industry, leading analysts and experts to advise caution among investors.
But what are the reasons behind this doubt? Has the industry lost faith in the future of money and the transformative promise of digital currencies through decentralization? Has the fundamental thesis that once made cryptocurrencies the darlings of global markets altered? Mainstream analysts now argue that cryptocurrencies have taken a backseat compared to other genuinely disruptive technologies such as artificial intelligence (AI) and cloud computing. A report from Refinitiv states that AI, among many technologies that have revolutionized our lives in recent years, stands as the most disruptive. Other disruptive technologies include high-speed internet, cloud computing, and blockchain. Surprisingly, according to the report, analysts show limited enthusiasm for cryptocurrencies.
“This is in stark contrast to cryptocurrencies, where institutional traders of all ages are largely unenthused despite many efforts to make these markets more accessible.”
So, does this imply that the entire cryptocurrency era was a fraud and cryptocurrencies hold no promise for the world? A detailed report from the Oliver Wyman Forum on Crypto Outlook for 2023 and Beyond addresses this question. The report is titled:
“The short answer is no – and that’s a good thing. Many parts of the sector show real promise of useful innovations to provide more efficient and effective financial products and services for businesses and consumers. Last year’s disasters exposed major flaws in the business models and practices of many crypto enterprises, particularly in the areas of exchange and lending. However, they also uncovered fundamental weaknesses in the industry’s underlying technology or its capacity to transform various financial service sectors. The challenge ahead – for digital asset businesses, investors, developers, policymakers, and consumers – is to focus on that potential, identify and rectify the flaws, and develop regulatory guidelines (both formal and informal) that protect investors and users while promoting truly valuable innovation.”
The fact that governments worldwide are taking measures against cryptocurrencies and the prevalence of scams and meme coins within the industry does not invalidate the fundamental concept behind cryptocurrencies. Many investors and major companies continue to bet on the future of digital currency, firmly believing that the world will eventually gravitate toward digital currencies, decentralized finance (DeFi), and related technologies.
JPMorgan stated in a recent report that it foresees limited downsides to the crypto markets in the short term. The report attributes the reversal of the crypto rally after the Ripple vs. SEC court ruling to a broader correction in equities, particularly risk assets such as tech, due to concerns about high U.S. real yields and China.
The Oliver Wyman report highlights that despite the challenges, innovation perseveres within the cryptocurrency industry. The report cites data revealing an increase in crypto developers during the peak of the crypto winter last year. Additionally, Celent’s data indicates that 91% of institutional investors express interest in investing in tokenized assets.
However, the report cautions that speculation remains a significant factor in the industry. It advises investors to concentrate on cryptocurrencies with solid underlying assets and technologies. The report notes that the industry has evolved into an interconnected ecosystem, prompting regulators and outsiders to adopt a holistic perspective. The report argues that this approach is flawed:
“Second, and more importantly, the trend of bundling everything as digital assets in the form of crypto creates significant indirect effects. Policymakers are likely to expedite the process of bringing digital assets under strict regulatory supervision and, in doing so, are expected to impose more stringent regulatory standards than before the recent downturn. Some of these policy actions may fail to differentiate adequately between different segments of the digital asset ecosystem. Similarly, funding for digital asset projects of all types is expected to become more difficult going forward, as opposed to when cryptocurrencies were generating windfall profits for investors.”
Best Cryptocurrency Equities with Gains
Source: Pixabay
Our Methodology
This article involved surveying mainstream financial media and consulting at least 12 finance websites to determine the most bullish cryptocurrency-related stocks according to these sources. We selected the 11 stocks that appeared most frequently across these websites. Notable stocks include PayPal Holdings Inc. (NASDAQ:PYPL), NVIDIA Corporation (NASDAQ:NVDA), and Block, Inc. (NYSE:SQ).
Cryptocurrency Equities with the Largest Uptrend According to Mainstream Financial Media
11. Aerohive Networks Inc. (NYSE:HIVE)
Number of hedge fund holders: 4
According to financial media, Arrowhive Networks Inc. (NYSE:HIVE), a Canadian crypto mining firm, ranks 11th on our list of the most promising cryptocurrency equities. Aerohive Networks Inc. (NYSE:HIVE) produced 274 bitcoins in August.
10. Canaan Inc. (NASDAQ:CAN)
Number of hedge fund holders: 4
Canaan Inc. (NASDAQ:CAN), a Chinese company known for its blockchain servers and ASIC microprocessors used in Bitcoin mining.
By the end of the second quarter of 2023, 4 hedge funds had invested in Canaan Inc. (NASDAQ:CAN).
The company’s management discussed the challenges and anticipated headwinds during the latest earnings call, stating:
“We believe the broader market lacks sufficient bullishness. Furthermore, miners’ financing capabilities remain constrained at large. The recent hash rate growth curve also indicates a significant decline in the overall industry’s incremental hash rate investment and deployment during the first three quarters of this year. This trend is in line with our market assessment. Additionally, policy changes related to cryptocurrencies and mining in various countries have created further uncertainty within the industry and our operations. In some instances, these changes may pose unexpected challenges to our actual operations. Given all the factors I just mentioned, our outlook for the third quarter of 2023 is highly cautious. We anticipate revenue of approximately $30 million for this quarter.”
9. Hut 8 Mining Corp. (NASDAQ:HUT)
Number of hedge fund holders: 6
Hut 8 Mining Corp., a crypto mining company, announced earlier this year its plans to merge with US Data Mining Group, Inc. in an all-stock merger of equals.
As of the end of the second quarter of 2023, 31 hedge funds out of 910 tracked by Insider Monkey held a stake in Hut 8 Mining Corp (NASDAQ:HUT). Steven Tananbaum’s GoldenTree Asset Management is the largest hedge fund stakeholder in Hut 8 Mining Corp (NASDAQ:HUT), with a $2.2 million stake in the company.
Similar to HUT, this hedge fund also holds stakes in PayPal Holdings Inc. (NASDAQ:PYPL), NVIDIA Corporation (NASDAQ:NVDA), and Block, Inc. (NYSE:SQ).
8. Marathon Patent Group, Inc. (NASDAQ:MARA)
Number of hedge fund holders: 10
7. Riot Platforms, Inc. (NASDAQ:RIOT)
Number of hedge fund holders: 18
Riot Platforms, Inc. RIOT (NASDAQ:RIOT) shares have reached an all-time low this year, having almost doubled by September 11.
By the end of the second quarter of 2023, 18 hedge funds tracked by Insider Monkey held shares in Riot Platforms, Inc. (NASDAQ:RIOT). The largest stakeholder in Riot Platforms, Inc. (NASDAQ:RIOT) is Paul Marshall and Ian Weiss of Marshall Weiss LLP, with an $18 million stake in the company.
6. Coinbase Global, Inc. (NASDAQ:COIN)
Number of hedge fund holders: 27
Coinbase Global, Inc. (NASDAQ:COIN) occupies the sixth position on our list of cryptocurrency equities with significant potential, according to mainstream financial media. In a recent announcement, Coinbase revealed its intent to acquire an equity stake in Circle, the issuer of the dollar-pegged USD coin (USDC-USD).
Insider Monkey’s database of 910 hedge funds reveals that 27 of them support Coinbase Global, Inc. (NASDAQ:COIN). The largest stakeholder in Coinbase Global, Inc. (NASDAQ:COIN) is Katherine D. Wood’s ARK Investment Management, with an $867 million stake in the company.
Similar to Coinbase Global, Inc. (NASDAQ:COIN), PayPal Holdings Inc. (NASDAQ:PYPL), NVIDIA Corporation (NASDAQ:NVDA), and Block, Inc. (NYSE:SQ) are some of the cryptocurrency equities believed to experience future growth by analysts.
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Disclosure: None. 11 cryptocurrency equities with the largest surge Originally published on Insider Monkey.
Source: finance.yahoo.com
