On a day where virtually every cryptocurrency in the top-100 was down double digits, DigixDAO posted impressive gains. The coin was up by as much as 24% on Thursday en route to new record highs.
DGD Price Levels
DigixDAO’s native DGD currency reached a new all-time high of $295.39 Thursday afternoon. The fresh record was followed by an immediate reversal, which drove prices back down to the $241 region. Once the bottom was reached, prices returned higher to trade around $274 for a gain of nearly 17%.
There are 2 million units of DGD in circulation, bringing the total market cap to $562 million. That’s enough for 43rd place on the list of active cryptocurrencies.
Roughly $38.4 million worth of DGD traded hands on Thursday, with Binance processing roughly 63% of the transactions. Huobi also saw roughly one-third of the daily turnover.
DigixDAO: A Brief Primer
Digix, as it is so often called, is marketed as Ethereum’s first Distributed Autonomous Organization. The gold-backed platform also operates as a lending system powered by the blockchain.
The blockchain has two digital currencies: DGD and DGX, with the latter backed by real gold. In the case of DGX, one unit of the coin is equivalent to one gram of gold. Although there is no way to verify the voracity of the claim that DGX is backed by bullion, an organization known as the Inspectorate Bureau Veritas is said to provide quarterly audits of the company’s physical vaults.
In the world of initial coin offerings, DigixDAO is considered relatively old. The ICO went public in March 2016 and hit its $5.5 million target within 12 hours. Had the project launched one year later, it probably could have raised significantly more. (Token sales collectively raised more than $6 billion in 2017, according to ICOData.)
Digix was the diamond in the rough on Thursday, as a global selloff rocked every major cryptocurrency. At the time of writing, the total market cap for all cryptocurrencies was $427 billion, which represents a decline of more than $90 billion over the previous day. That’s the lowest market capitalization since Dec. 22.
What’s more, cryptos have struggled to show any signs of recovery, with bitcoin extending losses below the $9,000 threshold. This has proven unlike other major corrections, where bargain-hunters snatch up cryptos at unusually low levels relative to recent averages.
That being said, there’s little to suggest that a fundamental shift is at work. The slump originated in mid-January after South Korean officials expressed the need to better regulate the domestic crypto market. Possible solvency issues at major exchanges as well as a massive cyber heist involving NEM coins have also weighed on investor sentiment.
Crypto investors who are bullish on the market’s long-term prospects may find no time like the present to snatch up tokens at affordable rates. However, the nature of the downturn is slightly different than previous cycles because there hasn’t been as many buyers at the bottom. It remains to be seen whether this trend will persist.