- These cryptos to buy boast significant competitive advantages, making them appropriate for long-term portfolios.
- Chainlink (LINK-USD): The platform is used for numerous applications, ranging from the weather and exchange rates to the stock market.
- Lucky Block (LBLOCK-USD): Expected to transform the global lottery industry, making draws fairer and more transparent via blockchain technology.
- The Sandbox (SAND-USD): Several celebrities have already built their virtual estates via the Sandbox, including Paris Hilton and Snoop Dogg.
Source: Chinnapong / Shutterstock
Global followers of digital assets are always seeking hot cryptos to buy. Losses of around 30% to 50% have become commonplace in the market since January. Thus, investors wonder whether the current bear market in digital coins could soon end.
The global cryptocurrency market capitalization is currently hovering around $1.77 trillion, down from its $3 trillion peak in November 2021. Many funds that give access to cryptos, such as the Bitwise 10 Crypto Index Fund (OTCMKTS:BITW) or the Defiance Digital Revolution ETF (NYSEARCA:NFTZ), are trading near their 52-week lows.
Now, cryptocurrency investors are on the lookout for the next big cryptos to buy for explosive returns. But inherent volatility is always a big concern.
2021 saw the cryptocurrency space become established in the financial mainstream. After all, institutional investors and big banks have started adopting these digital assets. Research and Markets estimates the global cryptocurrency market will exceed $32 trillion by 2027. That metric would mean a compound annual growth rate (CAGR) of more than 58% from 2022 to 2027.
While we may see fewer crypto booms this year, this selection of cryptocurrencies has significant real-world uses that could make them solid long-term investments. With that information, here are three cryptos to buy that could generate attractive returns for daring investors in May.
Source: Gorev Evgenii / Shutterstock.com
52-Week Range: $10.85 – $52.88
Our first crypto for today is Chainlink (LINK-USD). It can be described as a blockchain abstraction layer through which smart contracts are universally connected. The network communicates with external data feeds, events or payment methods to bring real-world data onto any blockchain.
Crypto analysts regard the network as a pioneer that is making smart contracts smarter. It allows the secure transfer of external market data, be it related to the weather or the stock market, onto a blockchain.
Chainlink is powered by the LINK altcoin that is capped at 1 billion tokens. As more smart contracts are designed that require real-world data, the demand for Chainlink oracles will increase.
LINK hit an all-time high (ATH) of $52.88 in May 2021, but has since declined steadily. In fact, the altcoin has lost more than 40% year-to-date (YTD). Its market cap of $5.6 billion positions Chainlink among the top 30 largest altcoins.
Lucky Block (LBLOCK-USD)
52-Week Range: $0.00066 – $0.0094
Next up is Lucky Block (LBLOCK-USD), which launched in January 2022 to build a worldwide lottery using blockchain protocols. The global lottery market is expected to reach more than $430 billion by 2026.
Early investors in the digital asset are understandably excited. Many believe the platform could take a slice of that pie by increasing transparency via blockchain technology.
The lottery platform is expected to offer frequent and increasing prize payouts. Winners will get 70% of the prize pool, whereas 10% of each jackpot will be distributed as a reward to token investors. Another 10% will be allocated for growth and marketing, and a further 10% will be donated to charities.
LBLOCK hit an ATH of $0.0096 in February. Yet, the altcoin has dropped nearly 50% over the past month and more than 82% from its ATH. It could represent a bargain for investors searching for the best penny crypto opportunities.
The Sandbox (SAND-USD)
Source: Ira Lichi / Shutterstock.com
52-Week Range: $0.149 – $8.36
Users can create and personalize their characters within the Sandbox Metaverse to compete in games. Meanwhile, unique non-fungible tokens (NFTs) are used to assign ownership to digital assets. Players rely on SAND tokens for NFT transactions.
In March, HSBC (NYSE:HSBC) teamed up with The Sandbox to engage with global financial services providers and sports communities within the metaverse. Celebrities such as Paris Hilton and Snoop Dogg have also joined the virtual platform.
SAND hit an ATH of $8.44 in late November 2021, but has constantly declined since then. As a result, the altcoin has lost 60% YTD.
Despite the dip, the coin has returned more than 250% over the past year. Its market cap of $2.7 billion positions The Sandbox among the top 40 coins on the crypto market.
On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Tezcan Gecgil 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.