Prior to its hard fork, should you buy the DCR token now?
- Decred has seen a solid increase in its value throughout the past week.
- The upcoming hard fork will increase DCR rewards for Proof-of-Stake (PoS) validators.
- This could lead to an increased value of the token.
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Decred DCR/USD is a forked version of the Bitcoin BTC/USD protocol; however, it is specifically designed to improve the organization as well as the decentralization of the cryptocurrency.
The main way through which it achieves this is by utilizing a hybrid consensus mechanism.
The future hard fork as a catalyst for growth
We saw a community vote which agreed to limit “malicious miners,” which are essentially the miners that have a history of artificially pumping-and-dumping DCR from accessing Decred.
The community also came in agreement towards raising the rewards for the Decred Proof-of-Stake (PoS) validators, which are the entities that validate the blocks which are submitted by miners, from 30% to 80%, which suggests that consensus wants to switch away from Proof-of-Work (PoW).
In other words, after this hard fork, Decred users would be incentivized to lock up their DCR for a certain time frame, which reduces their active supply from the market and bolsters the price.
Should you buy Decred (DCR)?
On April 19, 2022, Decred (DCR) had a value of $61.05.
To truly see what this value point indicates for the value of DCR, we will be going over its all-time high point of value, alongside the token’s performance throughout the previous month.
When we look at its all-time high point of value, Decred (DCR) had its ATH on April 17, 2021, when the token reached a value of $247.35. We can see that the token was $186.3 higher in value or by 305% at its ATH.
Looking at how the token performed throughout the previous month, Decred (DCR) had its lowest point of value on March 16 at $49.36.
Its highest point of value was on March 28 at $67.05. Here we can see that the token increased in value by $17.69 or by 36%.
With this in mind, we can expect DCR to reach $80 by the end of April, a value increase surrounding the excitement and hype of its hard fork.
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