While stocks continue to recover from their recent lows, cryptocurrencies are soaring. Even smaller digital coins and tokens have risen more than 50% over the past six months as the industry shakes off the pessimism and turmoil of the last year and surges ahead. After hitting multi-year lows last December in the wake of the $8 billion collapse of the FTX exchange, high-flying cryptos have come storming back, defying the naysayers.
However, the recovery comes as there are renewed efforts to regulate the cryptocurrency industry and enforcement agencies such as the U.S. Securities and Exchange Commission crackdown on digital exchanges, lenders and stablecoins. With the bulls back in charge, we look at three of the best cryptos to buy that could soar even more in May.
The largest cryptocurrency continues to be the top performer. After a brutal downturn in 2022, Bitcoin (BTC-USD) is up 70% this year. BTC has pulled back in recent trading sessions, but it continues to trade just below the key threshold of $30,000. The original cryptocurrency is riding high on improving investor sentiment towards risk assets and ongoing turmoil in the banking sector. Which was only Strengthened when First Republic Bank (NYSE:FRC) became the third U.S. lender to fail since the start of March.
Bitcoin, which was trading under $16,000 at the start of last December, has recovered so strongly in recent months that the bulls have come out in force to support the crypto. Some analysts are once again calling for BTC to break above $100,000. While it remains to be seen if such a move happens, there is no question that the crypto winter that was forecast for the sector last autumn was overblown. Bitcoin remains a force to be reckoned with among investors.
Close behind Bitcoin in terms of year-to-date gains is Cardano (ADA-USD). The digital currency was created by by Ethereum (ETH-USD) co-founder Charles Hoskinson. ADA has many attributes similar to ETH including a public blockchain platform, an energy efficient proof-of-stake operating model and the ability to facilitate decentralized finance (DeFi) transactions. These features make ADA popular among smaller cryptocurrencies. It also explains why Cardano has gained 55% so far in 2023.
Like with Bitcoin, many analysts are forecasting a continued rally in the price of ADA. Some people see upcoming network developments and upgrades as a potential catalyst for Cardano, with some being so bold as to predict that it will eventually surpass Ethereum. The upcoming enhancements to Cardano promise to strengthen its security and interoperability with other blockchains. If the improvements to ADA meet or surpass expectations, it could send the price of this crypto soaring.
Litecoin (LTC-USD) is another cryptocurrency that has been marching higher, having increased 57% in the last six months. This includes a 22% gain so far in 2023. LTC is one of the more popular altcoins, which refers to a cryptocurrency that was created from a divergence in Bitcoin. Though fans of this cryptocurrency claim it improves on BTC in important ways.
Advocates consider Litecoin to be one of the more reliable peer-to-peer payment systems and a key component when it comes to the buildout of DeFi networks. It is cryptos such as LTC that make it possible to execute digital transactions without the need for an intermediary such as a bank. The continued upheaval in the traditional banking sector has put a renewed focus on DeFi and cryptocurrencies such as Litecoin that make it possible. Further gains in LTC can be expected.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.