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Crypto market wrap: Little known Decred’s price balloons

By Monte Stewart


Updated

Photo of logo
Little known cryptocurrency Decred's price ballooned Friday. - Photo: Shutterstock

Little known cryptocurrency Decred’s price exploded Friday as most altcoin prices finished the week in the green.

Decred (DCR) more than doubled from its $26.80 price Thursday afternoon on the West Coast in North America.

(All figures based on CoinMarketCap Data.)

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DCR to USD

Price spikes in short periods

At one point Friday, the price rose 50% in an hour. During about a two-hour stretch, Decred rose 30% to $60 from $40.

The spikes were driven by a number of large purchases according to Decred observers who in Twitter posts cited transaction data visible on the blockchain.

The reported large investments occurred a day after crypto echange operator Coinbase with giant global asset manager BlackRock. The partnership  will enable institutional investors to buy, hold and sell bitcoin (BTC).

Institutional investors making comebsck

While small and retail investors have been virtually shaken out of the space over the past few months, institutions are now making a comeback,” said Mikkel Morch, executive-director for digital asset fund ARK36.

“Evidently, big players like BlackRock see neither the recent slump in prices nor the waves of bankruptcies among crypto companies as evidence that it’s over for cryptocurrencies or that there is something fundamentally wrong with this asset class.”

COIN to USD

Decred up 107% on week

Decred’s price finished the week up 107% from seven days earlier.

The coin’s supporters have attributed recent gains to Decred’s principle of ticketholder voting. To vote in the PoS process, stakeholders exchange some DCR for a ticket.

An individual investor may purchase one or more tickets.

DCR coin holders lock some of their coins in the protocol in exchange for a DCR ticket. Decred fans contend the locking mechanism has significantly tightened overall DCR supply, boosting the price.

A Decred website upgrade, which simplifies transactions for its users, may also have been a factor on Friday. In a tweet Thursday, Decred lead developer Jake Yocom-Platt said the upgrade was complete and ready to be deployed once stakeholders grant permission.

FLOW to USD

Two staking models

As Capital.com reported in March, Decred is a blockchain-based autonomous digital currency that seeks to capitalize on community involvement and open governance. DCR is the Decred blockchain’s native coin and serves as a means of exchange.

SOL/USD

178.98 Price
+2.380% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

BTC/USD

65,469.80 Price
-0.620% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,331.11 Price
-4.450% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.13 Price
-1.470% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

The coin is used for for staking and governance.

Decred uses a hybrid proof-of-work (PoW) and proof-of-stake (PoS) mining mechanism which guarantees that no single entity or individual can control the flow of transactions or make modifications to Decred without the community's approval.

 

PoS extremely popular

PoS has become extremely popular with investors lately because it is less energy-intensive than PoS and, therefore, much cheaper as global inflation accelerates.

In December 2021, Decred’s parent organization drastically alterred rewards tied to PoS and PoW. Investors who support the PoS mechanism receive 80% of coins generated, while PoW miners get only 10% and the Decred Treasury receives 30%.

Trio has good day

FLOW capped a good week by gaining 6%. The coin was up 48% from seven days earlier. On Thursday alone, FLOW gushed 32%.

Three other altcoins also had a good Friday.

NEAR climbed 17% and both THETA and  holo (HOT) increased 15%.

THETA to USD

Bitcoin moves above $23,000

Bitcoin surpassed $23,000 after falling below that mark on Thursday.

But ether (ETH) performed better as it rose 7% in comparison to bitcoin’s 3% increase.

Nomad posts bounty

In other crypto news on Friday, Nomad offered a bounty in return for its stolen coins.

Any party who returns 90% of the total funds that it hacked will be considered a white hat hacker, Nomad said Friday in a Twitter post. About $190m was drained from Nomad’s bridge on Monday.

Markets in this article

BTC/USD
Bitcoin / USD
65469.80 USD
-408.35 -0.620%
COIN
Coinbase Global Inc (Extended Hours)
246.18 USD
-12.93 -5.000%
THETA/USD
THETA/USD
1.486 USD
0.004 +0.270%
BLK
BlackRock
827.89 USD
-16.26 -1.930%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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