What is District0x (DNT) crypto and why is it up 80% today?

Highlight:

• Trading volume in DNT crypto has surged by 12,740% to US$452 million in the last 24 hours.
• The market capitalisation of DNT crypto has increased by nearly 84% in the last 24 hours to over US$96 million.
• DNT, which is based on ERC-20, is the native token of the district0x.

One lesser-known crypto that is buzzing today amid the overall bullish sentiment for the crypto market is DNT crypto. It is up 80% in the last 24 hours and was trading at US$0.1537 per token at the time of drafting. According to CoinMarketCap, trading volume in this crypto is up by a monumental 12,740% to US$452 million in the last 24 hours.

The market capitalisation of DNT crypto has increased by nearly 84% in the last 24 hours to over US$96 million. Based on this market capitalisation, its ranking on CoinMarketCap has jumped to 426th place. Before we find out the reason behind the sudden spurt in DNT crypto’s price, let us first know what this crypto is and what are its utilities.

What is DNT crypto?

DNT, which is based on ERC-20 (It is a standard used to create and issue smart contracts on the Ethereum blockchain), is the native token of the District0x. For the uninitiated, District0x is a network of decentralised markets and communities. Users can easily launch their own decentralised platforms, governed by a DAO (decentralised autonomous organisation) structure using this platform.

Each of these decentralized entities are known as  a “district”. These are built upon a standard open source framework comprised of Ethereum smart contracts and front-end libraries, also known as d0xINFRA.

Also Read: What is IOST crypto and why is it up 25% today?

According to the whitepaper of district0x, d0xINFRA provides districts with core functionalities that are necessary to operate an online marketplace or community.

What is unique about District0x is unlike other platforms, it does not charge a fee for launching new applications. Here, developers can create a district for free. But a refundable deposit needs to be paid to get the districts added to the district registry of District0x.

DNT token is mostly used for community governance. According to CoinMarketCap, the maximum supply of this token is 600 million, 60% of fixed maximum supply of 1 billion DNT. All these 600 million DNT tokens were distributed to participants in 2017 through an initial coin offering, which helped District0x raised US$9 million.

Out of the remaining 400 million DNT tokens, 180 million tokens are held in reserve for future fundraising activities while 22 million are reserved for giving rewards to advisors and the community. The rest 198 million DNT tokens are held by the district0x founders—Joe Urgo and Matus Lestan.

The token touched an all-time high (ATH) of US$0.4964 on 19 April 2021 and a low of US$0.002183 on 13 March 2020. Despite today's rally, DNT token is nearly 68% off from its ATH.

Why is DNT rallying today?

According to discussions on social media platforms, DNT token has witnessed price and volume break out on technical charts and this has probably led to positive sentiments. Worth mentioning here is that these sentiments(positive or negative) are mostly relevant for short-term movements. In the long-term, price action is guided by fundamentals of the crypto.

Also Read: Over 500% rise in 10 days: Green Metaverse Token's (GMT) wild run decoded

Prospective investors need to be extremely careful while betting their money on these lesser-known tokens. A thorough research is a must as these are highly risky bets. 

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