Prices of dogecoins denominated in bitcoins (DOGE/BTC) began to creep up higher yesterday and have since spiked to a two week high. At a high of 217 satoshis on Cryptsy in early Monday trading, prices have risen about 35% from the weekend average of 160. Dogecoin prices hit an all-time high of 280 satoshis last month after the digital currency had made global media headlines after users were instrumental in the crowdfunding efforts of the Jamaican Bobsled team to raise money to fund their trip to Sochi after qualifying for the Olympics.
In terms of news that is triggering the current rally, dogecoin demand appears to be being lifted by a combination of positive factors occurring over the weekend. Starting on Friday, doge appeared on several large print media papers including a mystery doge on the front page of the Guardian which followed a story about dogecoin in Danish Politiken earlier in the week. Also on Friday, the first ‘Dogeparty’ was held in NYC (more on Vice) which brought together parts of the virtual community together for real interaction.
In addition, over the weekend, the Sochi Games kicked off, bringing the story of the Jamaican Bobsled team and Indian Luger Shiva Keshavan who also received dogecoin donations, to a global audience. However, in regards to the Jamaican Bobsled team, most write ups about the team have focused on their crowdfunding efforts, with less specifics about dogecoin or other major contributors. That could change as the games draw closer to the races.
In other news, operator of the UK digital currency marketplace, Bittylicious, began to offer purchases of dogecoin today along with quarkcoins. Later in the week, DC Magnates plans to follow-up with Bittylicious for updates on trading volumes.
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Another theory about current demand is related to a rotation of bitcoin owners to alt-coins due to the current unease of prices and problems at MtGox. While plausible, such rotations of funds have in the past ‘floated all boats’ and led to an overall outperformance of alt-coins compared to bitcoins. As this isn’t currently the case, the current demand appears to be more targeted towards a rise in dogecoin interest than asset rotation.
Due to the minimal notional value of dogecoins and active interest, it has triggered transaction levels that rival that of bitcoins, just with smaller denominations. As a result, the volume growth has triggered some technical glitches to take place such as seen by Cryptsy’s announcement that they had changed their hot wallet to accommodate better for dogecoin growth. With MtGox experiencing reported technical problems that have halted customer processing of bitcoins at that exchange, evaluating how such issued occurred and their solutions will become an integral part for all digital currency businesses, as well as dogecoin in the future.