We recently published a list of 7 Most Undervalued Blockchain Stocks To Buy According To Analysts. In this article, we are going to take a look at where Ryvyl Inc. (NASDAQ:RVYL) stands against the other most undervalued blockchain stocks to buy according to analysts.
Transforming Finance: The Impact of Blockchain Technology
The blockchain industry is witnessing significant trends that are shaping its future and expanding its use cases across various sectors. One of the most notable trends is the growth of Decentralized Finance (DeFi), which is transforming traditional financial systems by providing peer-to-peer financial services on public blockchains without intermediaries.
Established financial institutions are increasingly adopting blockchain technology to enhance transparency and efficiency. According to a report by The Business Research Company, the global market for blockchain in banking and financial services was valued at $4.61 billion in 2023. The market is expected to expand significantly at a compound annual growth rate (CAGR) of 40.4% during 2024-2028 to reach a value of $27.69 billion by the end of the forecast period.
According to the 2024 Geography of Cryptocurrency Report by Chainalysis, an American blockchain analysis firm, global crypto activity is on the rise. Between Q4 2023 and Q1 2024, the total value of global crypto activity increased significantly to surpass levels seen in 2021 during the crypto bull market.
In January 2024, the US Securities and Exchange Commission (SEC) approved the first spot Bitcoin exchange-traded funds (ETFs), marking a significant milestone for the cryptocurrency market. This approval led to a surge in Bitcoin activity across all regions, particularly in institutional-sized transfers and in regions with higher-income countries like North America and Western Europe. Meanwhile, stablecoin usage saw higher growth among retail and professional transfers, especially in lower-income areas such as Sub-Saharan Africa and Latin America. The Geography of Cryptocurrency Report also shows that DeFi services have seen substantial year-over-year growth, especially in areas like Sub-Saharan Africa, Latin America, and Eastern Europe.
Crypto investing is becoming more mainstream and institutionalized with Bitcoin ETFs. However, blockchain technology and tokenization also have the potential to disrupt the traditional ETF model. On September 28, CNBC reported that Janus Henderson, a leading global asset management group, has announced a partnership with Anemoy Limited and Centrifuge to launch the Anemoy Liquid Treasury Fund (LTF), a tokenized fund that provides investors direct access to short-term US Treasury bills. Nick Cherney, head of innovation at Janus Henderson, emphasized that this development represents an evolution in delivering investment services to clients more efficiently rather than a threat to the ETF industry.
This new fund will retain the typical features of an ETF while enabling trading on a blockchain platform. This offers investors benefits like 24/7 trading, instant settlement, and enhanced transparency regarding fund holdings, surpassing what traditional ETFs provide. Cherney stated that the firm aims to be at the forefront of this opportunity, which reflects a broader trend of integrating blockchain into financial services.
These trends highlight the growing interest in blockchain technology and its potential to reshape financial systems worldwide.
Methodology
To compile our list of the 7 most undervalued blockchain stocks to buy according to analysts, we reviewed our own rankings, sifted through ETFs, and consulted various online resources. From an initial pool of over 30 stocks involved in the blockchain space, we focused on those trading at under 23 times their forward earnings as of October 4. This helped us identify stocks that are cheaper than the S&P 500 Index, which has a forward P/E of 23.6 as of October 4 (as per WSJ).
We included only those stocks that are estimated to have positive earnings growth this year. From this list, we selected the stocks that analysts believe possess the greatest potential for growth. Finally, we ranked the 7 most undervalued blockchain stocks to buy according to analysts based on their average price target upside potential as of October 4, 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s database of 912 elite hedge funds as of Q2 of 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An executive in the foreground overlooking a sprawling development office space.
Ryvyl Inc. (NASDAQ:RVYL)
Forward P/E: 3.68
Earnings Growth: 72.90%
Analysts’ Upside Potential: 257.14%
Number of Hedge Fund Holders: 1
Ryvyl Inc. (NASDAQ:RVYL) is an innovative technology company that is focused on revolutionizing payment transactions through innovative blockchain solutions. Founded in 2017 as GreenBox POS in San Diego, California, RYVYL offers a comprehensive suite of blockchain-secure payment processing and point-of-sale technology solutions to manage and track payments for both consumers and businesses. By leveraging its proprietary blockchain ledger and electronic token technology, RYVYL ensures enhanced security, rapid settlement, and data privacy in financial transactions. The company provides various services to merchants and consumers around the globe, including customizable payment solutions backed with blockchain technology.
The company is advancing its position in the payments industry by successfully integrating Visa Direct, which is now operational in five countries and set to expand to 80. Ryvyl Inc. (NASDAQ:RVYL) is processing transactions in 150 countries and plans further integrations in the third quarter of 2024. This initiative enhances RYVYL’s customers’ access to Visa Direct’s network. The company is also implementing the Visa payment enabler network, which will provide the necessary infrastructure for secure electronic payments. This platform allows banks, merchants, and consumers to conduct efficient transactions globally.
In the second quarter of 2024, Ryvyl Inc. (NASDAQ:RVYL) reported that processing volumes reached 1.055 billion, a 55% increase from the previous year. Revenue of $11.9 million in Q2 2024 was down from $14.8 million in the same quarter last year, when the company’s EU operations contributed only $3.8 million. RYVYL EU’s revenue surged by 134% year-over-year to reach $8.9 million in Q2 2024, driven mainly by growth in its Banking-as-a-Service offerings in Europe. The significant growth in European revenue indicates strong demand for the company’s products and services in that market. North American revenue was down due to regulatory impacts on a niche customer base.
In the Q2 2024 earnings call, management shared that Coyni, the company’s payment software supported by blockchain technology, is being deployed across Europe in partnership with First Data. This initiative is aimed at allowing Ryvyl Inc. (NASDAQ:RVYL) to operate as a payment facilitator, enhancing transaction processing capabilities and driving growth in the EU market.
In the US, Ryvyl Inc. (NASDAQ:RVYL) is strategically repositioning its operations to adapt to recent regulatory changes that impacted revenue. By rightsizing its US operations and hiring fintech experts, the company aims to tap into new verticals and expand its customer base.
On August 8, the company announced a licensing agreement for its payment-platform-as-a-service (PPaaS) with a US-based licensee, that will deploy services nationwide for Card Present (CP) and Card Not Present (CNP) transactions. This partnership is expected to create a new revenue stream, allowing RYVYL to earn transaction fees while reducing operational costs and improving gross margins. The PPaaS solution will enhance the payment experience for businesses and consumers by facilitating touchless payments and QR code transactions, positioning both RYVYL and its licensee for increased profitability and market reach.
Ryvyl Inc. (NASDAQ:RVYL) has positioned itself well to capitalize on the evolving financial sector through its strategic partnerships and innovative blockchain solutions.
RVYL is trading at only 3.68 times its forward earnings. Its cheap valuation presents a compelling case for investors. As of October 4, RVYL’s stock is trading at $1.40. Analysts are bullish on Ryvyl Inc. (NASDAQ:RVYL) and the 12-month median price target set by analysts indicates a potential upside of 257.14% from the current stock price.
Overall RVYL ranks 1st on our list of most undervalued blockchain stocks to buy according to analysts. While we acknowledge the potential of RVYL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RVYL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.