If you take a look at DigixDAO price, you couldn’t tell that February 21st was simply an excruciating day for 90% of cryptocurrencies on the market. That was the case for all major tokens and coins, including Ethereum, LiteCoin, VeChain and Bitcoin that went down for -9% during a 24 hour period. The only currencies that remained immune to this massive drop were: Tether, Dent, and DigixDAO. That is why we have decided to take a look at DGD closely and see if we could figure out what will happen next with this currency.

What is DigixDAO?

DigixDAO was a part of Ethereum’s first crowdsale, where DGD was created as a part of a bright decentralized future in the terms of Ethereum economy. The crowdsale that was organized a while ago went pretty well as Ethereum managed to sell 5.5 million dollars of DGD in a period of only 12 hours. DigixDAO as such exists on Ethereum’s blockchain platform in form of a system called Digix. Besides from DigixDAO, Digix has another token within its system – DGX. DGX represents standard LBMA gold reserves. When owning one DGX, you actually own 1 gram of 99.99% LBMA gold. The gold is being kept safely in vaults and every DGX owner, owns gold as well. The ownership is legal and cannot be retrieved unless DGX tokens are sold to another owner. The system uses PoA, which is actually a Proof of Asset, which further confirms that the gold represented by DGX is owned by a DGX owner.

DigixDAO is a bit different from DGX although it reflects its value as this currency represents Decentralized Autonomous Organization – DAO. You can use DGD for paying fees, making transactions and pick up occasional rewards within the Ethereum ecosystem. This way, Ethereum is practicing new age economy through DGD and acquiring stability through DGD, given the fact that Digix is closely related to the value of gold.

How Come DigixDAO Remained Up?

When all other coins and tokens were going down two days ago, DigixDAO stood resistant and remained in the green while trading at over 315$ per one unit the entire day while all other currencies except for DGD, Tether and Dent remained up with initial rises in price that made them a true success of the day.

The reason for having DigixDAO immune to the latest massive falls in price might be the fact that this currency is closely related to the value of gold. Gold is one of the most stable values there is and people have been investing in it ever since they realized that trading can be done much easier with a determined value in oppose to natural trading where people would exchange goods for goods. People are still investing in gold, and Digix actually represents an easy way of acquiring gold and keeping it through a decentralized ecosystem.

This fact can easily be one of the main reasons why DGD remained up while other currencies were trading in red, some at unexpectedly low prices.

Where is DigixDAO at now?

After staying immune during February 21st when all other currencies were suffering from drops, only two days after DigixDAO is trading at 315.73$ per one unit. The mentioned price is the result of the most recent change in price since DigixDAO dropped against the dollar for -0.15%. The drop, even though it is there, did not seriously affect the price of DGD. In addition to having a fall against the dollar that didn’t go too far below, DGD is trading in green against BTC and against ETH, which are both falling down.

The total market capitalization goes over 600 million dollars and it is predicted that DGD will continue to rise, slowly but steadily although it had experienced a minor drop in the last 24 hours.

It can be expected that this currency will hold onto its stability since it is closely related to gold, so more and more gold investors are being attracted to invest in DGD as well. In case you are interested in investing in this currency, you can easily become a part of Ethereum’s Decentralized Autonomous Organization by purchasing DGD on Binance. In case DigixDAO would continue at the current pace, it could easily get close to Ethereum’s price during the next couple of months. This is the case because more and more people see a bright future in investing in gold that represents a stable value, through digital currencies.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.

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