The next few days will show if DCR can command a higher price range.
Decred (DCR) peaked above $54 after Binance trading launched in the early hours of Wednesday. It later sank to $48.30, but the biggest change is the pick-up in 24-hour volumes. DCR can become one of the more actively traded coins, with the potential to see more significant price action.
DCR volumes rose to above $23 million equivalent in 24 hours, with most of the trades against Bitcoin (BTC). Based on the latest CoinMarketCap data, Binance now makes up more than 22% of DCR volumes in the DCR/BTC pair.
DCR is a slow-growing coin, still around 62% below its all-time high, based on Onchainfx data. However, it has been a successful investment in the past year, up more than 76% in dollar terms. In comparison, DASH has lost nearly half of its dollar value in this period, while Ethereum (ETH) has fallen by 33% since October 2017.
Past performance does not guarantee that DCR is a good investment. The coin is known for having a robust community and a significant portion of the coins are held for staking, voting, or maintaining the development fund. Still, DCR may see additional speculation and price volatility with more exchange exposure.
The asset remains relatively unknown, until recently basing most of its price movements on Korean markets. However, its presence on Binance may increase its visibility.
For the Decred network, the hashrate in October has almost doubled, which is another bullish factor for the coin as miners move in with powerful ASIC. DCR is still a potentially rewarding coin with prospects for price growth.
However, a “listing pump“ is seen as possibly damaging by some traders since it creates short-term hype and a spike in volumes. After the initial enthusiasm and bot activity subside, the coin is left with a record of volatility and a reputation for high risk.
Still, the Decred project has hopes for additional exchange listings, possibly on Gemini as well. The DCR asset has been shortlisted for the Coinbase Custody program for secure asset storage.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.