Price Once Again Above $500

Digix DAO (DGD) once again headed for uncharted territories, at least in dollar value, as it reached $420 briefly before falling to around $401. DGD is also at one of the highest prices against Bitcoin, as its most active DGD/BTC pair on Binance is affecting the performance. DGD remains volatile these days.

The DGD coin has performed counter to the market on other occasions as well, for yet unclear reasons. The DGD team has not been too active with announcements, and the coin may be having a special role as a speculative asset, especially due to its low supply of 2 million coins.

But it is possible that Binance, the crypto-only exchange, has caused DGD to become a safe landing spot for Bitcoin price fluctuations.

Binance is yet another exchange where USDT, or Tether tokens are used. So parking Bitcoin gains also means holding Tethers, which may be seen as risky. Still, the DGD trading volumes are about five times lower compared to the BTC/USDT pair. But this is one possible reason why DGD is appreciating rapidly, with volumes concentrated on a single exchange.

Why DGD Behaves This Way
The other reason for interest in the Digix project is the spreading awareness about the Ethereum network and its capabilities. The Digix reputation is also spreading in Asia.

The final reason is the expectation that DGD would soon release the DGX gold-backed token. The promised launch is within view, promised to happen by the end of Q1. It is yet unknown how the token would be distributed, traded, or received.

But at this rate of climbing, the DGD digital asset may see volatility ahead, and backtrack some of the gains. In the past round when DGD rose as the markets fell, the tides turned soon and the coin slid significantly.

The trouble with DGD right now is that the spike in volumes is uneven, and the trading starts to thin out as the price goes stratospheric. So DGD may start wiping out value very soon, if selling starts. Volumes fluctuate by 50% within a week easily.

Leave a Reply

Your email address will not be published. Required fields are marked *