Penny stocks can get the market’s attention, if nothing else. These speculative plays offer exponential returns for the strong-of-heart and provide ample opportunities for traders. Volatility is the name of the game with penny stocks; a few cents' of movement in either direction is easy on any given day and worth large percentages for traders. Notably, the top five are centered in three of the most emotionally charged markets, so they will provide ample catalysts for price movement. 

Today, we’re looking at the most actively traded penny stocks on Marketbeat. The basis for “most active” is the average daily volume. These stocks have the highest average daily volume of any penny stock at the end of 2023. The lowest is 20 million shares daily, the highest over 40, with the dollar volume running from about $14  million to about $175. Regarding market caps, four are small, and only one is a micro. 

Higher Bitcoin prices are great news for BTC miners

Bitfarms (NASDAQ: BITF) and TeraWulf (NASDAQ: WULF) are the #1 and #5 most active penny stocks at the end of 2023, respectively. They’ve both seen a tremendous spike in volume coincident with the rise in Bitcoin (Cryptocurrency: BTC) pricing that has both stocks advancing. Bitfarms is the larger and more stable of the two, as shown in the pricing and price action. The stock carries a higher price tag, and the market capitalization is almost double. 

Regarding the daily volume, Bitfarms is trading with an average volume of 40 million while TeraWulf is about half that, but recent volume spikes are far greater. The 5-day averages are closer to 200 million and 140 million, and the high volume may persist. The outlook for BTC has gotten much brighter due to legal rulings and an expected ruling on BTC ETFs due next month. The caveat is that whispers suggest the ruling will be a sell-the-news event and could cause the cryptocurrency to correct 10% to 20%. 

The price action in Bitfarms is leading the crypto-miners higher. It has advanced to a near-two-year high while TeraWulf remains range-bound. If TeraWulf follows Bitfarms higher, it could advance more than 100% from its current levels. Shares of Bitfarms may also double from their current levels if the BTC market follows through on the current signal, which is a bullish flag pattern. 

Tilray is a most active penny stock, but maybe not a good buy

Tilray (NASDAQ: TLRY) is the third most active penny stock but for differing reasons. This stock and market remain in a downtrend due to weakness in Canada, persistent oversupply in Canada and the US and lack of direction with US federal legalization. While the recent volume has picked up, it shouldn’t be taken for a bullish sign. Average volume has been steady over the last year or so and not at levels sufficient to reverse the downtrend. 

The technical risk in TLRY is tilted heavily to the downside. The stock is in a downtrend and recently set new historical lows. The upswing in prices today is heading back to retest resistance at the previous all-time low, which is likely to be strong. If TLRY cannot get above $2.60 and hold it, it will likely set a new all-time low in 2024. 

Penny traders bet big on EV OEMs Fisker and Canoo

The volume on Fisker (NYSE: FSR) and Canoo (NASDAQ: GOEV) picked up over the last month or so of the year as the stocks hit all-time lows. The usual suspects drive the downtrends, including production ramp issues and lack of revenue success. The caveats are that Canoo has entered its revenue-generating phase and entered a new period for the business. It may sustain operations with minimal new financing and meet market forecasts. On the other hand, Fisker is ramping up its delivery capabilities, so it may exceed forecasts tamed in the last earnings report. The bottom line is that these transportation stocks look weak and have high short interest to weigh them down: 40% for FSR and 20% for GOEV.