DigixDAO digital currency is said to be the first Ethereum major distributed autonomous organization. The cryptocurrency was a success from its first crowdsale when more than $5.5 million was collected. The coin has been in the news recently for breaking other records too. On Feb 2nd, DigixDAO managed to grow by more than 50% the same day Ethereum and Bitcoin dropped by 20% and 15% respectively. In the month of January 2018, the crypto market was volatile and this led to the price of Bitcoin and other major cryptos dropping. News that South Korea was tightening regulations, Facebook was banning crypto ads and India was pushing for a crackdown on altcoins contributed to the market rout.
In the last months of 2017, cryptocurrency market enjoyed a big buoy which saw Bitcoin surpass the $20,000 price. Come the month of January 2018 and things turned sour for almost every other crypto. Bitcoin’s price dropped steadily to touch a low of $6,038 on February 6th. On February 2nd, DGD managed to be the only currency in the top 100 by market cap not to be in the red.
Understanding DigixDAO DGD cryptocurrency
Bitcoin is designed to be a store of value just like gold. Digix, on the other hand, tokenizes gold based on the Ethereum blockchain. The Digix network has two elements; DigixGold Tokens (DGX) and the DigixDAO Tokens (DGD). DAO stands for Distributed Autonomous Organization. Each DGX represents 1 gram of physical gold (99.99% LMBA). The number of the speculative DGX tokens is 2 million. The movement of DGD reflects the general speculation around the value of gold. This means that the higher the transaction price and volume of DGD, the higher the interest in securing DGX which is backed by gold.
How has the performance of DigixDAO been?
At the start of 2018, DigixDAO enjoyed a steady upward growth which culminated in it reaching a high of $491 on February 2nd. Its market cap the following day was more than $903 million. This made it the only crypto in the top 100 to be on the rise while the rest were falling during that period; at least as far as market cap was concerned. On the same day (6th February) Bitcoin touched a low of $6,038, DGD dropped to trade at $161. The market cap for the coin was $421 million.
As at 1130 CET on February the 8th, the DGD crypto was trading for $301. This represents a 35.5% rise in price from the previous day. The market cap stood at $601 million while the volumes traded in the past 24 hours was $29.3 million.
How does 2018 look like for DigixDAO?
The performance of this cryptocurrency is tied to the speculation around gold. This means that a trader of this crypto should have an eye open for gold. Even though DGD is influenced by the performance of Bitcoin, it is certainly not as much as Ripple cryptocurrency which swings almost by the same margins as Bitcoin. The DGD coin has already outperformed many cryptos in that it has managed to keep its value through the tough month of January. It is safe therefore to say that this is one of the cryptos to watch out for the remainder of 2018.