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.
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.
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).
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 (UTC): September 24, 2014 11:28 PM