DigixDAO Increases By Nearly Half In Spite of Market Struggles

Although the cryptocurrency market in large is struggling with most currencies falling in value, the DigixDAO currency is growing. The currency has experienced an increase in its value by more than 50 percent.

The move comes as many other cryptocurrencies on the market are experiencing substantial declines in their values. Bitcoin, Ethereum and many other popular and large-scale cryptocurrencies have declined by at least 10 percent in value in recent time. Meanwhile, DigixDAO has experienced a significant boost in its value.

The currency had a value of around $240 as the month began. The currency had increased to above the $400 on Friday. It went to nearly $500 at around 4:00 UTC on Friday. The value has fallen since but it is at around $350 as of 10:00 UTC of the same day.

The current value of DigixDAO is close to twice what it was a month earlier. The currency had been struggling to try and get over the $200 mark during the past month but appears to have finally become a popular choice for investing.

Understanding DigixDAO

DigixDAO is a currency based off of the Ethereum blockchain. It is a part of Digix, a group that was listed as a Distributed Autonomous Organization or DAO by Ethereum.

DigixDAO consists of two separate tokens. First, there is the DGX token. Each token in this chain represents one gram of real gold. When a hundred of these tokens are redeemed, a person will get 100g of physical gold. In other words, DGX is a currency that is backed by real gold.

The DGD token is the more prominent one being traded on the market. It is also the coin that is being reflected in the recent increase in the currency’s value. DGD is a proof-of-asset token that works with gold although it could also be used with other physical assets if desired. People who hold the DGD token will claim rewards every quarter based on the DGX trades being made on the market. The DGX being traded is analyzed and distributed based on transaction fees. Only two million tokens are available, thus potentially making the currency more in demand as it becomes harder for people to acquire.

The value of DGD changes based on market rates. This includes changes over the speculation of gold.

A Significant Shift

The rise of DigixDAO marks a massive difference between individual currencies. Close to $100 billion in the market cap for cryptocurrencies had been lost in recent time. It is unclear as to whether or not these currencies can recover.

Meanwhile, the rise of DigixDAO has made waves in the cryptocurrency community. The market cap for the currency is at around $650 million. Coin Market Cap lists this as being 35th among cryptocurrencies in its market cap.

The currency is the only one in the top hundred currencies on the site to have experienced a rise of at least 5 percent of its value in the last day. Revain had a 4 percent increase during that same time period, thus making it the closest to DigixDAO in terms of its increase.