DigiByte has gained about 14% in 24 hours after DigiDollar, its native dollar-pegged asset, was activated on mainnet on 17 July. Minting it requires locking DGB as collateral, which removes coins from circulation for the length of the timelock. The open question is how much DGB actually gets locked.
What You Need to Know
DGB (DigiByte) trades near $0.0041, up about 14% in 24 hours and roughly 17% over the week, while the broader crypto market fell around 4% over the same stretch. Volume has risen 81% day on day to about $10.4 million. DigiDollar activated through miner signalling, not a company launch, and there is no central issuer.
DigiByte Breaks a Long Downtrend
DigiByte traded at roughly $0.004142 on Tuesday, up 13.6% over 24 hours and about 17% across seven days, according to CoinGecko. Market cap sits near $76 million, with 24-hour volume of $10.4 million, an 81% increase on the previous day.
The move extends a rally that began with DigiDollar’s mainnet activation on 17 July, when DGB gained more than 23% in a single session. DGB remains roughly 98% below its record high.
What DigiDollar Actually Is
DigiDollar is a dollar-pegged asset built into the DigiByte protocol rather than issued by a company. Users time-lock DGB in over-collateralised vaults and mint units against an oracle price; redeeming burns those units and releases the collateral. That makes it structurally different from fiat-backed stablecoins such as USDT and USDC, where a company holds dollar reserves. Here the backing is on-chain crypto collateral, there is no central issuer, and users keep their own keys. DigiByte describes it as the first decentralised stablecoin native to a UTXO blockchain.
Activation ran through BIP9 miner signalling on deployment bit 23. Until the network signalled it in, the DigiDollar consensus and network layers stayed dormant.
Why It Matters for DGB Holders
Two channels connect the stablecoin to the coin. The first is fees: more on-chain activity means more DGB spent on transactions. The second is supply, and it is the one traders have focused on.
Collateral locked in a vault leaves circulation for the duration of the timelock. With a fixed cap of 21 billion DGB and roughly 18.4 billion already mined, DigiByte’s materials argue that locking meaningfully reduces the tradeable float. That is a mechanism, not a guarantee, and it only bites if people use it.
Trade DGB in INR on 
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What Investors Should Watch Next
The first metric is adoption: how much DGB is locked in vaults and how many DigiDollars are outstanding. Activation is a switch; usage is the test. Second is node and pool upgrade coverage, and the third is exchange support, including whether trading and lending services return.
A fourth item sits off-chain. Arizona’s SB1649, which names DigiByte alongside Bitcoin and XRP as eligible state reserve assets, cleared a Senate committee in February and has not become law. Indian investors can track DGB in INR through the conversion page.
Read: What Is DeFi? Decentralized Finance Explained for Beginners
The Bottom Line
DigiByte has a real catalyst, which is more than most legacy altcoins can claim this year. DigiDollar is live, the mechanism for locking supply is genuine, and volume has followed the price. What is still missing is evidence that anyone is minting at scale.
FAQs
1. Who issues DigiDollar?
Digidollar is minted directly on the DigiByte blockchain against DGB collateral locked by the user, with no company holding reserves and no custodian holding keys.
2. Does DigiDollar reduce DGB in circulation?
Collateral locked in a vault is unavailable to trade until the timelock expires or the position is redeemed. The scale of that effect depends entirely on how many users mint.
3. Is DigiByte secure after the June incident?
The specific flaw was patched in v9.26.3, which re-enforces rejection of the retired Groestl algorithm. No user funds were lost, though the episode is a reminder that older codebases carry inherited risk.
