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I don't think it has anything directly to do with Mormonism, it's just that a lot of Mormon's seem to gravitate towards trendy names and making up their own names because they don't like to have kids with the same names as other kids they know.

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A woman from the American TV show Teen Mom named her son Jace around that time too, which I always figured somewhat helped it's popularity use.

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I actually like Jace. My cousin named her second son Jace. I don't mind the spelling of Jayce either, honestly.