Analysis of SULLA FELIX
This week’s blog post by Ali Martinez verified the community’s anticipation of launch as he analyzed the current price action of the DGTX token, drawing a clear correlation between the DGTX price appreciation and an increase in the total number of addresses with DGTX tokens. It was great to see his metrics as they demonstrate interest is mounting for the DGTX project and what the team is about to achieve: that long-awaited, liquid, commission-free, intuitive trading platform that genuinely takes the house edge out of trading.
With all the current growth and developments, it’s easy to lose sight of the real potential that DGTX offers to not just the crypto market, but ALL markets. At this moment, The DFE is storming up the CMC rankings, achieving daily trading volumes now in excess of $600 million in a single market – Bitcoin perpetual futures.
For those of us who have been supporting this project over the last two and a half years, seeing this vision come to reality feels like Digitex is just one week out from bursting across the finish line. However, the reality couldn’t be further from the truth. Both long term and new investors will soon come to realize that this beast is just getting started.
DGTX Market Roadmap
If we look at what the team has managed to deliver between May 2019 and today, it makes for exhaustive reading. Writing this article, I tried to sit down and create a comprehensive list of functional achievements required to produce such an exchange.
Everything from user security and account settings, developing an intuitive trading ladder, a market maker trading engine, an API, conditional order tools, BTC spot price, contract value dynamics – to name just a few. The list is extensive, and in reality, this complexity is understood by just a few people (namely SmartDec). I define the work to date as Digitex laying its foundations. The support structures have been built, and next up is the utilities.
With the current economic conditions, volatility is through the roof or alternatively, through the floor. What trader wouldn’t have signed up to DGTX if it meant they could short crude oil as prices went negative, or long the recovery thereafter?
By utilizing the DGTX token, the Digitex team are able to incorporate some of the largest markets on the planet onto their exchange, a feat that will set them apart from the competition in the coming months. To better gauge the magnitude of this, we will delve into the market size of some of these trading pairs.
Market Size Visualisation
Cryptocurrency – $277 Billion
The above roadmap should not be underestimated when considering the DGTX token utility and potential. To those in the crypto-sphere, it’s fair to say that Bitcoin is the coin against which all others are benchmarked. The belief that other tokens can surpass the reigning champ is laughable to many hardcore hodlers.
Although I don’t care to debate this, there are some considerations whilst benchmarking DGTX against the market leader.
The total market cap for cryptocurrency at the time of writing is $277 Billion with Bitcoin (BTC), ranging between 60-70% market dominance. This means that, in the cryptocurrency sector, BTC is the biggest fish in the pond. It is nearly six times bigger than its closest rival, Ethereum (ETH), and 19 times bigger than both Ripple (XRP) and Tether (USDT).
Gold – $10.9 Trillion
However, comparing the market cap of BTC to that of gold is a humbling realization for the cryptocurrency champion. The metrics show that the current gold cap exceeds Bitcoin by a factor of thirty, not including jewelry and below-ground reserves. For the DGTX token, the benefit of incorporating the gold market into the DFE is to create a direct link between cryptocurrency trading and traditional commodities.
This will allow users to hedge their cryptocurrency investments against the performance of gold without leaving the blockchain. Worried that crypto is going to go down in value but believe that gold will outperform the market? Then open a long on the DFE.
Digitex – A Decacorn?
This week I read a comment from a long-standing DGTX investor that simply read:
“Digitex Futures is a unicorn company.”
A unicorn company can be defined as a privately held start-up company valued at over $1 billion. If we take market cap as the defining metric, the top 18 cryptocurrencies currently maintain this status.
Personally, I’d go one step further and suggest that Digitex has the potential to be a decacorn – a company with a valuation above $10 billion. To achieve this status, the DGTX token would require a price in the region of $10, which recent Telegram polls suggest is the target for many current DGTX supporters.
One of the main reasons I see Digitex’s future as a decacorn company is because of its offering of traditional markets that have market capitalizations far exceeding that of just Bitcoin. These include gold, crude oil, and Fortune 500 companies.
Of the Fortune 500, the top five alone dominate with a combined market cap of $5.4Trillion. That’s thirty-one times larger than BTC.
The top 5 represents 24% of the Fortune 500, meaning the total market cap of this powerhouse is in the region of $21 trillion, or 124 times that of BTC.
Now considering the DFE is currently trading daily volumes in excess of $500 million on its BTC/USD market, we can start to get a picture for the DGTX potential if we can convert just a small fraction of traditional markets to use our ladder.
We haven’t even touched on the overall size of the global stock markets and indices. Trading the Nasdaq at the moment has higher volatility than the infamous BTC, and I can think of no better place to take advantage of the current price action than the DFE with zero commissions.
With an overall value of $89.5Trillion, these markets command different respect to that of young Bitcoin and its band of merry alt-coins.
What all this information represents to me is that even with Bitcoin’s dominance across the crypto-sphere, it is a small player in global finance. Herein lies the punch for the DGTX token – it offers a solution to trade futures in any market and does not restrict itself to the cryptocurrency realm. By offering a solution to trade futures contracts on astronomical markets such as gold, Fortune 500, and indices, Digitex has created a simply unique platform not just for cryptocurrency trading but all trading.