Price Analysis

DECRED’s rapid growth and advancements

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Decred (DCR) – launched in February 2016, is a complete autonomous, open-source, blockchain based cryptocurrency that works on proof of activity concept, which is a customized combination of proof of work (PoW) and proof of stake algorithms (PoS). One of the major disadvantages with PoW consensus algorithm was that it allowed more control to miners who owned and operated expensive mining equipment with high power consumption. Since the major part of the mining was getting concentrated only on such powerful operators, the other network users were at a huge disadvantage and did not benefit out of the network. Hence, PoS was introduced as an alternate consensus algorithm. This system allocated more rewards to consumers with more stakes in terms of the number of crypto coins held. Though PoS dodged the challenges from PoW algorithm, it implicitly encouraged virtual coin hoarding which bordered the use of cryptocurrency. PoA was then introduced as an innovative hybrid of PoW and PoS and claimed to offer the best from both the consensus algorithms.

Decred uses PoW mining method to validate and authenticate transactions on the network and to generate new Decred coins. Then it switched to PoS mining method to validate and authenticate the transactions for rewards, and to generate the necessary consensus on important infrastructural matters. Decred’s network has now added various new –age features such as censorship resistant blockchain-anchored public proposal platform, smart contracts, and the possibility of cross chain atomic swaps between various similar cryptocurrencies which allow over the counter transaction without the involvement of a third party.

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Decred Chart

 

The market cap value of Decred as on February 14, 2019, was $156,169,564 and its 24h volume was $1,490,592 at 11:04 UTC. This is based on the circulating supply of 9,313,665 DCR, which equals the total supply of the digital currency. Market analysis by Coinmarkcap shows that the MCap value has experienced a rise in current value by 19.64 percentage relative to the level on December 15 which was $130,550,208. This current bullish pattern will compensate for the loss which occurred during the fall of values from November 20 to December 16.

Elaborating on the DCR/USD pair, the current value of this pair is 16.77 USD at 11:04 UTC. The analysis on the pair shows that the MCap value and the USD have been running parallel to each other ever since their fall in November. At the beginning of November, the MCap value was comparatively lesser than USD. However, the prices started falling, and both the values interjected in mid-November and then split again with MCap value taking the lead. USD’s prices had been going lower since. This cryptocurrency reached its milestone when it was range bound between December 16, 2018, and December 24, 2018, as decred rallied from a low of $14.57 to a high of 20.18 USD which is a 42.83%, a spectacular return within eight days. However, the price of BTC has been on a tide with sharp rises and falls. Stats display highs and lows of BTC’s price value. On December 28, BTC’s prices had jumped from 0.00447304 at 08:19 UTC to 0.00575607 at 20:19 UTC. But the values started gradually decreasing and reached a low on December 31 at 12:19 UTC. The percentage decrease was calculated to be 28.53. Since then the price has wavered between 0.0044 and 0.0048. The value of BTC as on February 14 is 0.00461372.

The 20-day EMA has been constant with minor variations. The current value is $16.77, and that on January 25 is 16.97 USD. The RSI is in the oversold territory and is rested in favor of sellers. The traders and investors who are keen on blockchains and cryptocurrencies, the current fall offers an excellent opportunity to invest for the long term.

 

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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