3 Blockchain Stocks to Buy in August as Crypto Markets Reel

Given that we're already seeing evidence of blockchain paving the way for the future of decentralized finance (DeFi), the growth of the technology is already bringing tangible benefits in the technology sector.

With cryptocurrency markets weaker to begin the month, August could be an excellent time to pick up some of the best blockchain stocks. Here are three to watch.

Coinbase (NASDAQ:COIN) stock is performing exceptionally well in 2024 thanks to the sustained growth of cryptocurrencies like Bitcoin (CRYPTO: BTC-USD). Being a leading crypto exchange, Coinbase is naturally very close to the heartbeat of the cryptocurrency market.

Coinbase offers embedded finance for users to freely trade cryptocurrencies via its app around the world. This service is helping to democratize the world of crypto for retail investors.

The stock ended the first half of 2024 with a gain of 28%. Despite recent volatility in the cryptocurrency market, COIN is still on course for an excellent year of growth. This comes after suffering as negative growth swept through the crypto landscape in 2022 and early 2023.

Coinbase's strong performance this year is backed by its impressive fundamentals. In its Q2 2024 earnings report, COIN posted net revenue that more than doubled to $1.4 billion, while net income climbed to $36 million, compared to a loss of $97 million over the same period last year.

Coinbase stock is now trading at around $64 per share, down from highs of over $300 in 2021. Although cryptocurrency markets are weaker today, optimism remains strong for a bull market to drive cryptocurrencies higher in 2024 and 2025. Should this occur, we’re likely to see COIN’s growth outpace the S&P 500 comfortably.

Wall Street guru Cathie Wood wasted no time buying the dip in Coinbase shares in the wake of the crypto downturn, picking up 93,797 COIN worth $17.8 million on August 5. For investors who believe in the long-term capabilities of blockchain and cryptocurrency, Coinbase is an attractive stock to pick up at August’s discounted rate.

At its current rate of growth, it’s hard to discount Nvidia (NASDAQ:NVDA) from any innovative tech stock rollcall. Although the semiconductor giant isn’t best known for its involvement in the blockchain landscape, the stock plays a pivotal role in powering the growth of the blockchain industry as a whole.

At a CAGR of 68% over the coming eight years, the sheer level of processing power required to enable blockchain technology to realize its potential is likely to be delivered by Nvidia. This makes the stock a hot prospect for blockchain-focused investors.

In June, Nvidia briefly became the world’s most valuable stock. Its astonishing growth of around 745% between Q1 2023 and Q2 2024 underlines its invaluable role in powering technological growth throughout a number of emerging industries.

There are plenty of signs that Nvidia is delivering on its promise, too. This is a major boost for the stock, given the speculative nature of the generative AI boom helping to facilitate its growth in recent years.

Nvidia’s Q2 earnings projected a 107% year-over-year revenue growth to $28 billion. The firm’s status as a market leader in the semiconductor landscape means technological innovations can only grow the stock’s prospects looking to the future.

There may be no stock on Wall Street more enthusiastic for blockchain than Block (NYSE:SQ). Best known as a payments app, Block has a keen cryptocurrency focus and an in-house team of Bitcoin (CRYPTO: BTC-USD) developers that work on Block’s open-developer platform for blockchain applications.

The stock dipped around 15% in the first half of 2024, making it a more attractive price for investors to buy in August ahead of what could be a bullish end to the year for Bitcoin and the wider cryptocurrency landscape.

While announcing Q2 2024 gross profit growth of 20% year-over-year to $2.23 billion, Block also announced an internal reorganization designed to foster more growth and accelerate go-to-market strength for the company.

For a firm that has identified both banking and Bitcoin as drivers for future growth, CEO Jack Dorsey’s enthusiasm for blockchain technology may see Block's restructuring focus more squarely on emerging blockchain and cryptocurrency markets.

With Block investing 10% of its gross profit from Bitcoin products into buying Bitcoin, the company is in line to grow alongside the wider blockchain and cryptocurrency industry. That makes its weaker 2024 performance a possible strong buy-in opportunity for a stronger end to the year.

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