We should move from MD5 to something more secure. DSpace chose to use "salted SHA-512 multi-round hashing". According to the German Federal Office for Information Security MD5 has massive weaknesses and should not be used anymore.
Suitable algorithms are above all the newer SHA -2 versions ( SHA -256, SHA -384, SHA -512), and the newly developed standard SHA -3 with a hash length from 256 bits. These hash functions are designed for applications with higher collision-resistance requirements.
https://www.bsi.bund.de/DE/Themen/ITGrundschutz/ITGrundschutzKataloge/Inhalt/_content/m/m02/m02164.html?nn=6610622 lists some criteria to chose a method.
Google translate (scroll down to "Hashing" or "selection criteria"):