Dogecoin Price Continues Climb after PayPal GoCoin Partnership

September 24, 2014 23:30 UTC

In the past week, the Dogecoin price has jumped more than 25%, allowing it to challenge Nxt for a top-five market cap ranking. CCN examines this altcoin price movement to help investors make informed trading decisions. Dogecoin enthusiasts have “much” to celebrate and this fervor has moved into the Dogecoin price, as well.

Dogecoin Price Continues to Climb

Investors have become very bullish on Dogecoins. One month ago–on August 25–the Dogecoin price was a lowly 22 satoshis–and the once-great altcoin risked losing its top-ten market cap ranking. However, the community remained resilient, and over the past month the Dogecoin price has climbed back to respectable levels.

The Dogecoin price has ebbed and flowed throughout its uptrend, but it has increased steadily during the past seven days. On September 17, the Dogecoin price was 59 satoshis. It increased to 70 satoshis the next day, and slowly increased to 74 satoshis on September 22. It briefly declined to 72 satoshis on August 23 but then resumed its climb following PayPal’s partnership with GoCoin. At present, the Dogecoin price is 79 satoshis.

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PayPal Partnership with GoCoin Lends Dogecoin Legitimacy and Bolsters Dogecoin Price

The Dogecoin price climb was bolstered by the recent news that PayPal has partnered with Coinbase, BitPay, and GoCoin to bring cryptocurrency payments to certain digital merchants. While Coinbase and BitPay only process bitcoin payments, GoCoin also processes litecoin and Dogecoin transactions. This is huge news for Dogecoin, because it lends legitimacy to its use as currency rather than just for fun or as a learning tool.

The GoCoin/PayPal partnership also helps separate Dogecoin from other competing altcoins. As Clay Gillespie noted:

The partnership announcement is huge for users of other cryptocurrencies, specifically Litecoin and Dogecoin, because it closes the social gap between Bitcoin and the rest of the alternatives. It wouldn’t be farfetched to say that Litecoin is now, without a doubt, the current number two in social perception. It also wouldn’t be crazy or silly to claim Dogecoin as number three, moving into a bit more serious area of existence.

In the 24 hours following the GoCoin partnership announcement, the Dogecoin price rose more than 10%. Additionally, Dogecoin trading volume spiked nearly 73% to $1.1 million.

The Dogecoin price has increased more than 25% over the past week. The current Dogecoin price is 79 satoshis. Chart via CoinGecko

Following the recent price increase, Dogecoin is poised to challenge Nxt for the fifth-place rank in market cap. Nxt currently has a market cap of $32,292,306. At $32,259,898, Dogecoin is a mere few thousand dollars behind Nxt (market caps via CoinMarketCap).

Dogecoin Investment Advice

The announcement that Dogecoin could be added as a payment option at numerous digital merchants bodes well for the long-term success of Dogecoin because it gives Dogecoin a leg up on the competition. Dogecoin also has a 79% CoinGecko rating, placing it second after Bitcoin on the CoinGecko charts. Since CoinGecko measures overall coin health, a high rating signifies that the coin is performing well in all key areas. Consequently, Dogecoin currently appears to have long-term potential. However, investors should remember that increased merchant acceptance could hurt the price in the short-term. Merchants generally convert almost all of their cryptocurrency payments to fiat currency, which places constant sell pressure on coin exchanges. Many posit this has kept the bitcoin price low, and there is ample reason to suspect altcoin prices will follow suit when merchants begin accepting those coins.

Disclosure: The author does not have any investments in or affiliations with the coin(s) discussed above.

Images from Shutterstock.

Last modified: September 24, 2014 23:28 UTC

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