Shibes everywhere should “much rejoice,” because the Dogecoin price is having an impressive run. After falling as low as ninth in total market cap during summer 2014, Dogecoin has roared back to life with a massive price increase that shows signs of permanence. The Dogecoin price has experienced double-digit percentage increases several times throughout the last month–including this week. CCN analyzes this altcoin price swing to help traders make informed investing decisions.
Dogecoin Price Increases 23% in 24 Hours
The Dogecoin price has been in a sustained uptrend throughout the month of September. As recently as August 29, the Dogecoin price was only 25 satoshis. Since then, the Dogecoin price has increased by more than 350%.
Last week, the Dogecoin price rose 25%. However, the rapid pace of Dogecoin’s ascension has not scared away investors. In fact, the Dogecoin price increase has only quickened–rising at an almost vertical rate from September 23 to September 26.
On September 23, PayPal announced a partnership with GoCoin, a cryptocurrency payment processor that facilitates Dogecoin payments along with litecoin and bitcoin. PayPal’s announcement catalyzed Dogecoin buy pressure, and the price responded immediately. From September 23-25, the Dogecoin price rose from 72 to 91 satoshis.
On September 26, the Dogecoin price exploded another 23%. The Dogecoin price began the day at 82 satoshis and steadily increased throughout the day. At press time, the Dogecoin price was 114 satoshis.
Dogecoin Price Increase Roars Shibes into Market Cap Top 5
The recent Dogecoin price increase has vaulted Dogecoin over several major altcoins on the market cap rankings. Dogecoin held a top-5 ranking for most of the first two quarters of 2014, but the recent price rut dropped it out of the top 5 for several months.
Last week’s capital infusion moved Dogecoin into sixth, where it was poised to challenge Nxt for a top-5 ranking. On September 24, Dogecoin had moved to with a few thousand dollars of passing Nxt–a feat it would accomplish the next day.
Dogecoin now has the fifth-highest cryptocurrency market cap, a ~$43.1 million market cap valuation, and a ~$11.8 million cushion on sixth-place Nxt. Dogecoin still has some work to do if it wants to overtake fourth-place BitShares X, however. BitShares X currently possesses a ~$69.3 million market cap–which was bolstered by a 12% price increase on September 26.
After such rapid price movement, one might expect the Dogecoin price to stabilize a bit or enter a cooling-off period. However, this may not be the case, because Dogecoin is just days away from halving its block rewards.
On block 400,000 (approximately October 2), the Dogecoin mining rewards will halve from 62,500 Dogecoins per block to 31,250. Halving block rewards will slow Dogecion’s rate of inflation and greatly reduce the amount of coins miners will be able to liquidate on exchanges, which will increase the Dogecoin price over the long-term (compared to if block rewards stayed the same; of course, this does not account for other factors). Some of this month’s price movement could owe its climb to investors buying into Dogecoin before the block rewards decrease, but those investments will likely increase as the date grows closer. Buckle up–if you haven’t already–because Dogecoin is shaping up for a wild ride.
Disclosure: The author has no Dogecoin affiliations or investments.
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