In 2021 we have witnessed the skyrocketing of cryptocurrency market capitalization as a whole, reaching heights above $2 trillion. These price movements got the attention of the mainstream media, leaving us with hundreds of thousands of stories and articles about this market – with Bitcoin being mentioned the most. However, many argue that Bitcoin is not the best that the market has to offer, claiming that there are many altcoins that are more efficient and have a lot more to give to their users.
Because the limits of blockchain technology have yet to be found, there are infinite possibilities of creating new and improved cryptos that would make Bitcoin virtually obsolete. Despite the fact that that scenario is not likely to happen with Bitcoin being the first-of-its-kind, new cryptocurrencies that are way more efficient than Bitcoin will continue to be created.
One relatively old cryptocurrency that claims to be more efficient than Bitcoin and even Litecoin is Digibyte. Unlike account-based blockchains, Digibyte uses a system known as UTXO to keep track of transactions on the network. Even so, why does Digibyte claim to be better than Bitcoin? How does it work? What makes this cryptocurrency unique? Does DGB have a promising future? Throughout this article, we will give a brief review of Digibyte and speculate on its future price.
DigiByte Fundamental Analysis
To begin with, Digibyte was founded in 2014 by Jared Tate, also known as “DigiMan”. The initial motive behind the creation of DigiByte was to explore new ideas and ways in order to make blockchain technology better. Like most older cryptocurrencies, Digibyte uses a Proof-of-Work (PoW) consensus mechanism and uses miners to validate transactions and create blocks, making it a PoW blockchain. This cryptocurrency claims to have the fastest block time when compared to other UTXO coins, mining a new block every 15 seconds. To achieve this speed, Digibyte uses a real-time difficulty adjustment which keeps block times stable at 15 seconds. This feature is known as Digi-Shield and has been implemented in many other blockchains like Ethereum, Dogecoin, and ZCash.
Digibyte was the first altcoin to implement SegWit; a feature also known as Segregated Witness that increases the limit of transactions per block. Through SegWit, DGB has over 10 million blocks as of right now, with Bitcoin having less than 700,000. Being able to process 1066 transactions per second makes Digibyte 40x faster than Bitcoin and 10x faster than Litecoin. Lastly, DGB uses five different mining algorithms, making it one of the most decentralized blockchains in the market.
UTXO stands for Unspent Transaction Output. This term refers to the amount of cryptocurrency that is left in a wallet after a transaction is executed. After each transaction, the unspent outputs are sent back to a database as inputs, making themselves available to use for a new transaction in the future.
A UTXO database stores change from crypto transactions, meaning that it is set to empty or zero when it first starts. Whenever a transaction is executed and there are leftover outputs, they are deposited back onto the database as inputs. This may seem similar to cashier checks; checks that cannot be exchanged for custom amounts but rather for their entire value.
DigiByte Price Analysis
As stated by Coinmarketcap, DigiByte entered the crypto market with a price of $0.001 and quickly fell to $0.0002. This rapid decrease in its price continued, resulting in the coin hitting an all-time low of $0.00003 in January 2015.
The last bull run led to the coin reaching new heights – heights that were not anticipated for DGB. DigiByte entered the last bull run with a price of $0.003 and saw its prices surge by 667% just weeks after the Bitcoin halving occurred in May 2020. It rested around that price until February 2021, during which the coin started growing rapidly, setting a new all-time high of $0.156 in mid-May. Today, the coin is sitting at $0.05, experiencing a 6.1% decrease in its price since yesterday.
Digibyte Price Prediction 2021
Even though DigiByte is one of the seniors of the cryptocurrency market, that does not mean that its crypto journey is over. According to CoinFan, the value of DGB might increase gradually throughout the remaining months of 2021, possibly hitting a minimum price of $0.24 by the end of it. Similar to CoinFan, Coinpedia forecasts that the coin might reach the price of $0.15 once again, where it may settle for a while.
DigiByte Price Prediction 2022
DigiByte has introduced many features that helped other cryptocurrencies improve their networks; consequently, improving blockchain technology as a whole. One of the many examples that we can take is the above-mentioned features known as Digi-Shield. Being a senior in the crypto world and giving so much to it, it is unlikely for DigiByte to flop anytime soon. According to Coinpedia, the coin is set to enter the year 2022 with an exchange value of $0.18 and increase slowly throughout 12 months, potentially concluding the year with a price of $0.25.
Another rather optimistic forecast on the future of Digibyte is that done by Coinliker, claiming that the DGB token may hit the price of $1.44 sometime in 2022. To understand whether this price increase is possible or not, we must also consider the supply that this coin has – with DigiByte having a maximum supply of 21 billion. There are 14.41 DGB tokens in circulation at the time of writing, meaning that 69% of the max supply has already been mined and distributed to individuals and is already circulating. For the coin to reach a price of $1.44, its market capitalization would need to accumulate more than $30 billion, a milestone that not many cryptocurrencies have passed. However, as the crypto market grows in size, reaching that market cap should not be a problem for an efficient coin that has been around for this long.
Price Prediction For The Next 5 Years
The next five years look promising for the whole cryptocurrency market as they get implemented in the real world more and more each day. However, the more the market grows, the more is its total capitalization allocated to new cryptocurrencies – mainly second and third-generation ones. Digibyte is based on the code of Bitcoin and Litecoin, making it is a first-generation cryptocurrency. Because of that, many experts think that DigiByte does not have a future that bright if they do not start working on improving and updating their network. DigiByte lacks marketing as well, and with fewer people knowing about it, fewer investments are done.
According to CoinBureau, another drawback for DigiByte is listed in only a few crypto exchanges, which translates to less liquidity for their market – and liquidity is a crucial element for every cryptocurrency. That being said, let’s take a look at what prediction websites and experts have to say about DGB.
According to Digitalcoinprice, the price of DGB may continue to increase slowly, with an average API of 19%. They don’t predict a huge growth for the coin in the long term claiming that it might reach $0.14 by 2024 and $0.19 by 2026, setting a new all-time high. Similar to Digitalcoinprice, Coinskid forecasts show that DigiByte may hit the price of $0.13 sometime throughout 2024, which in the crypto sphere could be considered as a pessimistic approach.
The forecasts done by Coinpedia show a bigger increase in the coin’s value, giving it a price of somewhere between $1-$5 by the end of a five-year period. They back their prediction by stating that an intensified market cap could heavily affect the coin’s price because of its low supply. Additionally, CoinLiker estimates that the price of a single DGB token may reach a price of $3.50 by the end of 2025, potentially leaving the coin with a market capitalization of around $60 billion.
DigiByte Market Prediction
Because the cryptocurrency market has the potential to reach skyrocketing heights, many financial experts are trying to predict its future. As for DigiByte, there are many predictions out there, and most of them are different from one another.
The prediction done by Walletinvestor shows that the coin may have a trading value of $0.10 after 12 months, leaving investors with a 98% increase in their investment’s value in one year. Predictions that were done by this website claim that the price of DGB might increase by 520% in five years, leaving the coin with a price of $0.31 by mid-2026.
Tradingbeasts argue that the price of DigiByte could trade at $0.12 by the end of 2021, around 130% higher than they trade today. Additionally, this price may continue to increase slowly, potentially hitting the price of $0.14 by 2024.
Similar to the above-mentioned websites, GovCapital predictions show the price of DGB may hit the $0.10 milestone by the end of 2022. This increase is thought to continue throughout five years, possibly leaving the coin with a price between $0.26-$0.35 by June 2026.
Our Price Prediction
As for us at Crypto Academy, we believe that some senior coins might end their crypto journey soon, as more third-generation coins join the market. However, after briefly looking at the history of DGB, we believe that this coin may overcome this obstacle just as it has overcome many before this one. Our forecast shows that DGB might close the year 2021 with a price between $0.60-$1.32. Because its circulating supply is still at 69% of reaching its maximum, the price of the coin might continuously seek to inflate.
The long-run might prove more difficult for DigiByte, though. According to our predictions, DGB has the potential to reach a trading value of $3.60 by the end of 2024 and hit the milestone of $5 by the end of 2026, possibly closing the five years with a 9900% increase in its price.
Historic Market Sentiments
2014 – 2016
In February 2014, DigiByte entered the market with a price of $0.0012. Its price began to decrease heavily, going as low as $0.00003 in 2015. However, DGB began recovering shortly after, bouncing to the price of $0.0003 by the end of 2016.
The year 2017 was a rollercoaster for the price of DGB. At the beginning of the year, the coin was sitting at $0.0002; however, the coin’s price had increased by 400% by mid-April. This increase was further continued during May and June with the coin hitting the price of $0.06, which meant a 29900% increase in its price in 6 months. The coin left that year with a price of $0.07.
The coin entered the year while on a bull run, reaching the price of $0.135 and setting a new all-time high in January. Its price plunged by the end of January, leaving the coin at a price of $0.045. The price of the coin continued to decrease, leaving the year 2018 at $0.01.
2019 was a very steady year for the coin when compared to other years. DGB entered the year with a price of $0.01 and left it with a price of $0.006, witnessing a -40% API.
In 2020, the price of DGB climbed to $0.035 by August – witnessing a 480% increase since the beginning of the year. This year is considered to be the year during which the coin prepared to enter the biggest bull run it ever witnessed – that of 2021 during which it reached the price of $0.15.
In Which Major Cryptocurrency Exchanges is DGB Listed?
Can you mine DGB?DigiByte
- Yes, this crypto uses the Proof-of-Work consensus mechanism, therefore, it is mineable.
Will DGB hit $1 by the end of 2021?
- It is very possible for DGB to hit the $1 milestone by the end of 2021; if not by the end of 2021, it is highly likely that it may reach this price in a few years.
Is DGB a Good Investment?
- According to our research, investing in DGB might prove beneficial for you. Its price is expected to increase in the future potentially
- Some people claim that many altcoins are more efficient and useful than Bitcoin.
- DigiByte uses the Proof-of-Work mechanism to validate transactions and secure its network.
- DigiByte claims that its network can process more than 1066 transactions per second.
- Digi-Shield is a real-time difficulty adjustment feature created by DigiByte. Dozens of other cryptocurrencies like Dogecoin, Ethereum, and Bitcoin Cash have implemented it into their networks.
- At the time of writing, there are 14.41 billion DGB tokens in circulation; with a capped supply of 21 billion.
- DigiByte might likely hit the price of $1 before the year 2023.
- According to our research, now may be a good time to invest in DGB.