Crypto Gems: Top Crypto Assets To Watch & Buy in May 2025

Bitcoin had an extended period of consolidation in the first quarter this year but recovered in April with a 14% gain. Bitcoin has started May with a bullish bias and is currently trading around $105,000, a mere 3% off its all-time high. This surge has been aided by a variety of factors including easing tariffs, US trade deals and suggestions of US interest rate cuts soon.

After months of under-performance, Ethereum has finally donned its rally hat with an impressive 40% gain last week and has pulled the altcoin market along. Market cap of OTHERS, altcoins excluding the top 10 crypto assets, is now above $290 billion, up $70 billion in the last 7 days. It is still 50% off its January high.

Bitcoin dominance, which topped out at 65.5% last week, is currently at 62.7%. The extended devaluation of altcoins in Q1 this year means that while Bitcoin trades above $105,000, altcoins will quickly regain lost value.

While we explore strong narratives in crypto and assets that can rally well below, it is crucial to conduct your own research and understand the risks associated with each investment.

Defi and DEX – HYPE, AAVE and PENDLE (Considerable Risk, High Returns)

Hyperliquid (HYPE) operates on its own Layer-1 blockchain, specifically designed to enhance the efficiency DeFi applications using a custom consensus algorithm called HyperBFT. With over 400,000 users with $1.2 trillion in trade volume, Hyperliquid is gaining traction in the DeFi space. Its token, HYPE, was one of the best airdrops last year for loyal users. HYPE has demonstrated strong performance last month with nearly a 100% gain and is now trading above $25 a token. With a $8.4 billion market cap currently, HYPE can do a 4-6x this year.

Aave (AAVE) is the largest money lending market in crypto. With more than $26 billion in deposits, Aave’s revenue has indicated strong fundamentals with a 10x growth in revenue last year. This revenue fuels ecosystem grants and staking rewards incentivising more AAVE staking and generating demand for its token. AAVE, with a $3.4 billion marketcap, can do a 3-5x this year from current levels.

Pendle (PENDLE) is a⁠ ⁠DeFi protocol that enables users to tokenize and trade future yield on yield-bearing assets. Its total value locked (TVL) has grown to $4.4 billion, more than 300% up year to date. With $5.6 million in fees in a month, PENDLE is well positioned to take advantage of a risk-on sentiment in the market. Pendle is backed by Binance Labs, the Spartan Group, and the Arbitrum Foundation. PENDLE, with a $650 million marketcap currently, has lots of room for growth this year (5-8x).

Layer 1s – AVAX and SUI (Medium Risk, Good Returns)

Avalanche (AVAX) is a Layer-1 blockchain focused on the development of subnets which facilitate gaming. It is backed by Pantera Capital, a16z (Andreessen Horowitz), Coinbase Ventures etc. Avalanche has been successful in onboarding BIG games like Shrapnel, Spellborne, Bloodloop, Off The Grid etc. Avalanche also supports a growing memecoin ecosystem. AVAX has shed more than 50% early this year and, hence, is a strong buy at current levels. With a market cap of over $11 billion, AVAX has potential to do a 3-5x over the next six months if sentiment in layer 1s including Ethereum pick up strongly.

Sui (SUI) is often touted as a challenger to Solana. It is a Layer-1 blockchain founded by a strong of developers who earlier worked together in Meta. It aims to cater to the next billion users in Web3 and is already the third largest non-EVM layer 1 chain in terms of TVL. Its Mysticeti blockchain upgrade, started in 2024, has added an extended edge in terms of transaction processing . SUI, currently with a $14 billion market cap, can do a 4-6x over six months. Token unlocks are key dates to watch out for to capitalise on short-term dips for buying.

Memecoin of the month – FARTCOIN (High Risk, High Returns)

Memecoins were in trend again in January with the advent of TRUMP and MELANIA. However, they have fizzled out post Trump’s inauguration and struggled since. Amidst this gloom, FARTCOIN stands out with a 3x gain since April and a strong growing community.

Though the risks are high, there is a considerable merit to allocate a minor portion of one’s portfolio in memecoins once the market sentiment is positive.

The OG – BTC, ETH and SOL (Lowest Risk, Decent Returns)

It is prudent to pivot a majority of your crypto portfolio to the safest assets – Bitcoin (BTC) primarily, followed by Ethereum (ETH) and Solana (SOL). They are proven to build adoption by new investors in the space.

(The author of the article is Vikram Subburaj, CEO of Giottus Crypto Platform)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)