Decred had displayed a phenomenal performance in the bull run of 2021. The cryptocurrency was operating at a price level of around $12 before the bullish momentum started during the fourth quarter of 2020. DCR token went all the way up to $250 – establishing it as its all-time high – which is nearly a staggering 2,000% gain. Despite the subsequent bearish momentum in the market, DCR coin established itself above $100.
At the time of writing, the cryptocurrency stands at a price level of $171. Decred is continuing on an upward trend but with minor corrections and currently, it appears to be in a minor market correction. The price of cryptocurrency has fallen in the past twenty-four hours while the weekly performance has been increasing. However, the minor downside movement is not suggestive of any oncoming bearish momentum.
What is Decred?
Decred is one of the earliest projects in the market. The cryptocurrency copies the code of the king of the market – Bitcoin – a short while after it was launched. Bitcoin took the market by storm with its technology but it has some inherent faults that cannot be ignored. Decred took it upon itself to improvise on the code of Bitcoin to solve some of the problems facing the network. Decred’s unique selling point is that it offers greater control and involvement to users.
The network utilizes a unique hybrid mix of Proof-of-Stake and Proof-of-Work to create an experimental version of Bitcoin. Decred encourages user participation in the governance process of the network. The PoW and PoS hybrid system works in a way to ensure that. PoW miners are responsible for mining the cryptocurrency by contributing computational power to solve complex puzzles. The PoS stakers are also responsible for validating transactions but their focus is on the network’s governance as they have voting rights and decision-making power. A proposal system called Politeia to enable the seamless interaction of both the consensus mechanisms. Politeia’s public proposal web platform allows users to offer their suggestions for the network.
DCR’s price predictions
Although the market has been flooded with newer projects employing newer and improved technologies, Decred still has a unique proposition in the sense that it has employed a hybrid system which has the best of both world – PoS and PoW. The hybrid technology gives the network a strong footing. Moreover, it is also one of the well-known projects in the market. Hence, the future outlook of cryptocurrency is bright.
According to the estimates of Wallet Investor, the cryptocurrency is expected to be operating at a price level of $308 in a year’s time while the five-year projection places it at $830. Digital Coin Price suggests a year-end price at $255 while the price by 2026 is expected to be at $608.
