Cryptocurrency and technology companies are leading the gains in the U.S. IPO market.

Newly public technology and cryptocurrency companies are major beneficiaries of renewed investor interest in the IPO sector in the U.S.

Investors are enthusiastically trading the shares of newly listed companies, hoping to find a company that delivers consistent profits.

The sudden increase in investor interest in IPOs is sending the shares of newly public companies soaring on their first day of trading. This enthusiastic trading resulted in the most fervent first-day exchanges the U.S. market has seen since the boom days of 2021.

The IPO wave is at historic levels.

The recent streak of strong debuts in the market includes a 140% gain for drone technology company Airo Group Holdings Inc., a 168.5% increase for stablecoin issuer Circle Internet Group Inc., and a staggering 735% rise for cable network Newsmax Inc. earlier this year.

Each of these companies raised over $50 million in their offerings. Much of the momentum behind these IPOs is driven by professional traders and retail investors jumping in on the first day.

However, many of these buyers were unable to secure shares during the actual IPO process, as that is usually reserved for large mutual funds and institutional investors committed to long-term positions. As a result, the post-listing surge is often a product of market hype.

"Companies that see large increases on their first day tend to be younger, hard to value, and generate a lot of retail excitement," said Jay Ritter, a finance professor at the University of Florida who has studied IPO performance for decades. "What is true about most of these companies is that they are not mature and are difficult to value."