In this month’s instalment of ‘What does the data say?’, we look at the incredible rise of Dogecoin, Nike’s direct-to-consumer strategy and the highest temperature ever recorded in Canada.

Has Dogecoin outperformed Ethereum and Bitcoin?

What was a satirical token launched as a joke by two software engineers over a decade ago has become one of the world’s most popular cryptocurrencies. Dogecoin, named after the viral dog meme, has been on a wild rise this year.

Dogecoin has been on a wild rise this year

This is due, in part, to the “Elon Musk effect”. The Tesla billionaire’s supportive tweets have acted as jet fuel to Dogecoin’s price all year – pushing it from less than one cent at the beginning of the year to an all-time high of 74 cents in May.

At its peak, the cryptocurrency had a year-to-date gain of more than 15,000 per cent – quadruple those on the S&P 500, including dividends, since 1988. In percentage terms at least, its price increase has also left Ethereum and Bitcoin for dust.

Figure 1: Dogecoin’s price change this year (versus Ethereum and Bitcoin) since January 1
Source: Coin Metrics, as of July 21, 2021

Although the cryptocurrency has since fallen (see Figure 2), Musk’s tweet on July 1 (“Release the Doge”1) pushed the price up once again, highlighting his influence on Dogecoin’s fortunes. 

Figure 2: Dogecoin’s share price since January 1
Source: Coindesk, as of July 21, 2021

Is Nike’s direct-to-consumer strategy paying off?

The iconic sportswear brand had an incredible pandemic performance, with its share price jumping from $66.08 on March 16 last year to a record-high of $156 last month.

The company realised the importance of branding to drive consumer preference when competitors are just a click away; it also realised the need to take control of its distribution and deepen its connection with consumers.

Nike reported its highest ever revenues for its own brand in the twelve months ending May 31, 2021 ($42.3 billion). Figure 3 shows that a whopping $16.4 billion came from D2C sales – a 32 per cent increase on the previous year. The sportswear giant has more than doubled its percentage of D2C sales from 16 per cent in 2010 to 39 per cent today.

Figure 3: Nike’s revenue since 2010 ($bn)
Source: Nike SEC Filings, as of May 31, 2021

North American heatwave

Abnormally high temperatures have been recorded in North America in the last few years as climate change intensifies. Lytton, a village in British Columbia, recently recorded the country's highest ever temperature – a staggering 49.6 Celsius (as shown in Figure 4).

Figure 4: Daily high temperature in Lytton2
Daily high temperature in Lytton
Source: Dr. Robert Rohde, as of June 30, 2021

The issue with such high temperatures is not just that they are dangerous to the human body (temperatures over 40 degrees Celsius can cause heat exhaustion), but they are also catalysts for devasting wildfires.

High temperatures are catalysts for devasting wildfires

The paradox here is that wildfires are caused by climate change, but they also contribute to global warming, which creates a dangerous feedback loop. Indeed, emissions from US fires last year were three times higher than usual.The fear is that this year’s fires will be even worse, particularly as western US states are already experiencing soaring temperatures and wildfires.

References

  1. Elon Musk, ‘Release the Doge’, July 1, 2021. Available at: https://twitter.com/elonmusk/status/1410519466518233089
  2. Dr. Robert Rohde, ‘Stunning breakout far above all previously measured values to set a new national temperature record for Canada of 49.6 °C (121 °F). This heatwave has reached further above historical means than any other summer heatwave previously recorded anywhere in North America.’, June 30, 2021. Available at: https://twitter.com/RARohde/status/1410157638109872134
  3. Nancy Harris, Thailynn Munroe and Kelly Levin, ‘6 graphics explain the climate feedback loop fueling Us fires’, World Resources Institute, September 16, 2020

View our full monthly series

We take a visual approach to illustrate topical data themes in economies, markets and beyond.

Learn more

The Little Book of Data

A collection of visualised data showcasing a range of themes including data and technology, diversity and inclusion, and markets and economics all brought together in one book resulting in an expressive and stunning compilation. Reserve your copy of The Little Book of Data now.

Request your copy

Want more content like this?

Sign up to receive our AIQ thought leadership content.

Please enable javascript in your browser in order to see this content.

I acknowledge that I qualify as a professional client or institutional/qualified investor. By submitting these details, I confirm that I would like to receive thought leadership email updates from Aviva Investors, in addition to any other email subscription I may have with Aviva Investors. You can unsubscribe or tailor your email preferences at any time.

For more information, please visit our privacy notice.

Related views

Important information

THIS IS A MARKETING COMMUNICATION

Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (AIGSL). Unless stated otherwise any views and opinions are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. Information contained herein has been obtained from sources believed to be reliable, but has not been independently verified by Aviva Investors and is not guaranteed to be accurate. Past performance is not a guide to the future. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested. Nothing in this material, including any references to specific securities, assets classes and financial markets is intended to or should be construed as advice or recommendations of any nature. Some data shown are hypothetical or projected and may not come to pass as stated due to changes in market conditions and are not guarantees of future outcomes. This material is not a recommendation to sell or purchase any investment.

The information contained herein is for general guidance only. It is the responsibility of any person or persons in possession of this information to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. The information contained herein does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it would be unlawful to make such offer or solicitation.

In Europe, this document is issued by Aviva Investors Luxembourg S.A. Registered Office: 2 rue du Fort Bourbon, 1st Floor, 1249 Luxembourg. Supervised by Commission de Surveillance du Secteur Financier. An Aviva company. In the UK, this document is by Aviva Investors Global Services Limited. Registered in England No. 1151805. Registered Office: St Helens, 1 Undershaft, London EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119178. In Switzerland, this document is issued by Aviva Investors Schweiz GmbH.

In Singapore, this material is being circulated by way of an arrangement with Aviva Investors Asia Pte. Limited (AIAPL) for distribution to institutional investors only. Please note that AIAPL does not provide any independent research or analysis in the substance or preparation of this material. Recipients of this material are to contact AIAPL in respect of any matters arising from, or in connection with, this material. AIAPL, a company incorporated under the laws of Singapore with registration number 200813519W, holds a valid Capital Markets Services Licence to carry out fund management activities issued under the Securities and Futures Act (Singapore Statute Cap. 289) and Asian Exempt Financial Adviser for the purposes of the Financial Advisers Act (Singapore Statute Cap.110). Registered Office: 1 Raffles Quay, #27-13 South Tower, Singapore 048583.

In Australia, this material is being circulated by way of an arrangement with Aviva Investors Pacific Pty Ltd (AIPPL) for distribution to wholesale investors only. Please note that AIPPL does not provide any independent research or analysis in the substance or preparation of this material. Recipients of this material are to contact AIPPL in respect of any matters arising from, or in connection with, this material. AIPPL, a company incorporated under the laws of Australia with Australian Business No. 87 153 200 278 and Australian Company No. 153 200 278, holds an Australian Financial Services License (AFSL 411458) issued by the Australian Securities and Investments Commission. Business address: Level 27, 101 Collins Street, Melbourne, VIC 3000, Australia.

The name “Aviva Investors” as used in this material refers to the global organization of affiliated asset management businesses operating under the Aviva Investors name. Each Aviva investors’ affiliate is a subsidiary of Aviva plc, a publicly- traded multi-national financial services company headquartered in the United Kingdom.

Aviva Investors Canada, Inc. (“AIC”) is located in Toronto and is based within the North American region of the global organization of affiliated asset management businesses operating under the Aviva Investors name. AIC is registered with the Ontario Securities Commission as a commodity trading manager, exempt market dealer, portfolio manager and investment fund manager. AIC is also registered as an exempt market dealer and portfolio manager in each province of Canada and may also be registered as an investment fund manager in certain other applicable provinces.

Aviva Investors Americas LLC is a federally registered investment advisor with the U.S. Securities and Exchange Commission. Aviva Investors Americas is also a commodity trading advisor (“CTA”) registered with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”). AIA’s Form ADV Part 2A, which provides background information about the firm and its business practices, is available upon written request to: Compliance Department, 225 West Wacker Drive, Suite 2250, Chicago, IL 60606.