Decred (DCR), which some believe should be among coins like DASH and Litecoin (LTC), has finally caught up with the pack. DCR made a dramatic overnight move, at one point appreciating more than 38% to reach $94. Afterwards. DCR retreated, shrinking the gain to 27%, to $86.67. DCR has been up more than 40% on a weekly basis, lining up among the more robustly growing coins.
Decred is a purely Proof-of-Work coin keeping to its plan, where Proof-of-Stake projects with no mining have become the fashionable solution. Decred also has a layer of nodes to drive consensus and avoid unwanted forks – but its aim is to also become an ASIC-mined coin, because of the protection of a higher hashrate against attacks.
In just a few months, the hashrate for the Decred network has grown up to 10 times, to more than 3,000 TH/s. The levels are much lower compared to Bitcoin, but the sudden uptick looks like the mass addition of ASIC – the powerful specialized mining machines.
What is a bit worrying is that one entity, Coinmine.pl, controls 50% or more of the hashrate. While this has happened to other coins as well, it is a potential vector for a 51% attack, which is seen as the worst event that could happen to a network.
But if DCR achieves more prominence, the chief driver would be trading. Volumes for DCR spiked from almost nothing to consistent records, even higher compared to the December pumps. And while DCR achieved its Bitcoin peak in the summer of 2017, now it may become a more prominent selection, and recover both the dollar and BTC prices.
The trading profile of DCR is different to other prominent coins, which rely on Binance and the inflow of US-based investors there. But DCR is most actively traded on the now somewhat forgotten Poloniex and Bittrex. The return of Bittrex as one of the more active exchanges boosted DCR trading volumes to above $26 million. DCR has also been added to the niche Nanex exchange, trading for now in negligible volumes against NANO (XRB).