While Bitcoin (BTC) had a great first half of 2023, so did another crypto coin Ethereum (ETH). Ethereum, which trails only Bitcoin in the crypto world, is known for its uses as a blockchain-powered, open-ended decentralized software platform.
Since the “crypto winter” of 2022, the network completed a significant update, known as the Shanghai Upgrade, under which it shifted its blockchain validation system from proof-of-work to proof-of-stake, and marked one of the most significant developments in the relatively small history of cryptocurrency.
Under 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 has largely been hailed as a crypto rebound, the price of Ethereum has soared in 2023, going up 54.9% year to date, as of Jul 25. In this endeavor, it lags behind Bitcoin, which has gone up 76.4% in the same period. But one must remember that while Bitcoin is primarily a digital currency, Ethereum is a programmable blockchain platform. Ethereum’s blockchain has a reputation for being highly versatile and adept in building complex applications.
Historically, a state of fast-rising interest rates has not proven conducive to the crypto market. However, a recent spate of data, which showed cooling inflation and market speculation that the Fed might be ending its hawkish monetary policy stance soon, means that things are looking up again for the sector.
So, with a “crypto spring” in the offing and Ethereum already starting to make good of the state of the market, it might be prudent to keep a watch on stocks exposed to this open-source, decentralized blockchain platform.
Accenture plc ACN: This global system integrator, which 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 8.2%. The Zacks Consensus Estimate for its current-year earnings has improved by 0.1% over the past 60 days. Accenture currently carries a Zacks Rank #3 (Hold).
CME Group Inc. CME: This company operates as one of the world’s largest futures exchanges and offers a wide range of derivatives contracts. It provides various solutions to invest in cryptocurrencies like Ethereum.
CME Group’s expected earnings growth rate for the current year is 11.5%. The Zacks Consensus Estimate for its current-year earnings has improved 1.6% over the past 60 days. CME Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HIVE Digital Technologies Ltd. HIVE: This cryptocurrency mining company operates in Canada, Sweden and Iceland. It engages in the mining and sale of digital currencies, including Ethereum Classic.
HIVE’s expected earnings growth rate for the current year is 78.1%. The Zacks Consensus Estimate for its current-year earnings has improved 55.3% over the past 60 days. HIVE currently carries a Zacks Rank #1.
CME Group Inc. (CME): Free Stock Analysis Report
Accenture PLC (ACN): Free Stock Analysis Report
HIVE Digital Technologies Ltd. (HIVE): Free Stock Analysis Report
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