How is the Dogecoin Trading Market Driving Dogecoin Prices?

Cryptocurrency prices are climbing. The top four in the Cryptocurrency charts have been relatively consistent over the last month. If you look at the trends over a longer period of time, you’ll see that they follow a very similar pattern. Here is what I think is happening with these currencies.

One of the reasons why we see this rise in Cryptocurrency prices is because people are starting to trade the distributed ledger technology for real life products. Most popular ones right now are like forex exchanges, stocks and bonds. The big advantage to trading in these types of exchanges is that you can buy things on the platform that doesn’t exist yet on the internet. So this creates a high volatility environment and makes Cryptocurrency prices go up and down.

Another reason that we see this rise in the prices of Cryptocurrencies is because there is more supply than demand right now. If you think about it the network is growing and it will soon have an amount of users that are larger than any group of users that has ever existed. The users are taking this technology and they are trading it for real life products that they can use everyday. This means that the distribution is limited and the value of each coin is limited.

The third reason that we see a rise in the prices of Cryptocurrencies is that the big network’s developers are trying to increase the number of transactions done by their users. The more that people use the technology, the more applications come out and the more value that goes into the cryptocommodity market. So they will do whatever they can to make it easy to use and get more value from it. Which means that increases in the marketplace and cryptospace prices naturally follow.

We saw this with the Litecoin and the Dashboards. The Dashboards were very popular right before the news hit that Dashboards are actually going to be implemented into the major platforms. This made the LTC shoot up in popularity and makes the latest prices of those two very high. In the same time the other two most popular cryptospace currencies, the US Dollar and the Euro, were on the decline. So again, the competition between the currencies is increasing and it increases the chances that we are seeing the highest prices of the popular cryptocurrencies.

Now, let’s talk about the last 24 hours of data and how this impacts the Cryptocurrency Exchanges. It is important to understand that the volatility and changes are high during the first part of the evening. But after this the values of all the currencies start to stabilize. At this point the Cryptocurrency Exchanges must decide if they want to keep their prices level or if they need to drop them. If they raise the prices the users will take off and if they lower the prices the users will take in and the exchanges will lose money.

If we take a look at the top-performing Cryptocurrency Exchanges at this point in time we can see that there are three popular ones, which are Namely, Poloniex, and Bithumb among many others. At this point in time the value of the Dogecoin was near the end of its life cycle but it was also starting to see a lot of new investors to enter the market which is driving the value of Dogecoin up. At this point in time when the Dogecoin price was near the end of its life cycle we would have had a difficult time finding a good entry for a new investor. At this time, ninety-three percent of the Dogecoin was purchased by new investors and ninety-two percent of the Dogecoins on the market were sold. So clearly the Dogecoin was being driven by new investors and sellers had no problem selling the Doge Coins.

So, as you can see from this data it appears that a great deal of new interest has been generated in the last few months to invest in Cryptocurrencies. The biggest challenge for investors right now is creating sufficient demand for the tokens, so they can become worth something. The biggest benefit to be had from investing in Cryptocurrencies is the use of the distributed ledger technology. The distributed ledger technology makes it possible for the token to be easily traded between investors around the world without any problems, thus increasing liquidity and value and making it more appealing to traders. So if you want to start investing in Cryptocurrencies check out the charts, invest in a few dozen doges and watch your investments increase in value in no time!