With the cryptocurrency market in something of an uncertain state right now—it was just “crypto winter” not so long ago, and the knock-on effects are still in play—seeing companies make moves in this space is a little unsettling. Nevertheless, Chinese e-commerce giant Alibaba (NYSE:BABA) is about to make a move of its own.
The new move features a deal between Alibaba and Mysten Labs, who created the Sui blockchain network. With Mysten in its corner, Alibaba is working to be part of the latest developments in Web3 systems. Web3 is a yet-to-come version of the internet that focuses mainly on decentralization. That will mean a lot of new demand for cryptocurrency as the crypto economy will be at the heart of Web3.
Mysten Labs, in turn, will take advantage of Alibaba Cloud tools—like its security measures and compliance capability—to help build further operations in the Web3-targeting space. Since Sui is a proof-of-stake blockchain, it has the capability to offer not only better performance but also lower costs. This combination of factors could bring out some powerful new systems and give Alibaba a further edge over its competition.
Overall, analyst consensus currently rates Alibaba stock as a Strong Buy. With an average price target of $146.23, it comes with 68.22% upside potential.
