Crypto Analysis | DEC Heading For Peg Again

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Burning DEC for the greater good

After some consolidation in the 0.0007s DEC is now set to head for its soft peg at 0.001 again. While there are still billions on the market that have to get removed/burned for the "flywheel" to really go into effect, we are seeing tremendous progress towards this goal. First there is the ongoing great burning event that still has another 11 days. So far 367M DEC and 160M DEC-B has been burned! This is quite much indeed and perhaps more than most expected. We can expect these numbers not to increase much further as the rewards in store simply do not warrant more burning. But perhaps more players see it as a "do it for the greater good" kind of a thing. It will definitely help the game tremendously removing DEC from the ecosystem.

As you can see I have not contributed in the event since I am busy buying DEC for LAND 1.5. I didn't get all the DEC I need to stake my cards soon, so this is a bigger priority for me.

We also have a new proposal waiting for official approval. Paying for RW in DEC has been already tried before and failed when it was first proposed. But now we have an astonishing 98% approval rating. It seems this time players see the value in it and it has good chances for passing in the official vote later this week! The cons for this is that RW cards will probably lose some value, but if several hundred millions of DEC gets burned, this will soon translate into a higher SPS price which will benefit everyone actively involved in the game.

TA

Well there is not much of a "TA" to do in a "stable" coin. But the chart does look rather good. We are once again in the 0.0008s and it looks as if we will reach peg soon again. LAND 1.5 is coming in about a month and Soulkeep is expected to launch in this time as well and both have a tremendous potential to burn or lock up large quantities of DEC.

We can expect price to stay volatile overall, though. Even when reaching peg price will probably drop again into the 0.0008s, but if all goes well we should see a gradual decline in volatility so DEC would perhaps stay within a 5% range of its peg. Although I do not expect it to significantly break its peg to the upside since it will be profitable to sell DEC once it goes there (keep in mind that there is a 2.5% buffer).

 

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