Recently, the Dogecoin price has been in decline, in part due to the recent Moolah scandal (Moolah had a strong presence within the Dogecoin community). But the Dogecoin price reversed course on Monday, rising nearly 20% after Twitch announced that they now accept Dogecoin as payment for their video game streaming subscription service.
Dogecoin Price Rebounds after Twitch Announcement
Upon hearing the announcement, investors immediately began rocketing up the Dogecoin price on exchanges. The Dogecoin price–which had fallen from 69 satoshis to 60 over the preceding week–jumped to 71 satoshis on October 22.
Dogecoin now has a market cap of ~$25.4 million, ranking it 5th on the market cap charts and giving it a ~$1.2 million edge on 6th-place Nxt.
The Twitch announcement is important for Dogecoin’s long-term viability. While Dogecoin’s primary emphasis may be fun, the coin is also supposed to be a currency and thus needs to work to increase merchant adoption. Increased merchant acceptance provides infrastructure and lends a coin legitimacy. In the long run, the Dogecoin community will reap huge benefits from the Twitch announcement. Nevertheless, investors should be aware that merchant acceptance often has a negative effect on coin price in the short-term, since merchants almost always exchange the coins for fiat currency. Dogecoin investors should ignore temporary price dips and set their eyes firmly on the future.
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Disclosure: The author is paid in and holds investments in bitcoin. He is not invested in or affiliated with any of the altcoins discussed in this article. Any advice contained in this article is solely the opinion of the author and does not reflect the views of CCN. Neither the author nor CCN is liable for your investing decisions, so do your homework and never invest more than you are willing to lose.
Images from Dogecoin and Shutterstock.