In a surprising turn of events, Decred (DCR), a token emphasizing autonomy and decentralized governance, has surged 16% in the last 24 hours, now trading at $34.58—its highest price since November. Over the past month, DCR has emerged as the top-performing token in the top 100, gaining over 80% since a change made to its treasury rules on February 8. This impressive rally contrasts sharply with the broader cryptocurrency market, which is facing challenges primarily driven by bitcoin, currently trading around $67,000 after encountering renewed selling pressure.
Bitcoin’s recent struggle comes after a brief rise that saw it approaching $70,000 on Wednesday, leading to a 2% decline over the last 24 hours. Other major cryptocurrencies, including Ethereum (ETH), XRP, and Solana (SOL), followed suit, reflecting similar losses as market sentiment remains cautious. Investors are increasingly turning to put options for downside protection in the face of this uncertainty, with growing activity noted among ETF holders and corporate treasuries purchasing puts with a $60,000 strike price set to expire in six to twelve months.
Analysts indicate that while institutional inflows are on the rise, they have not yet reached a decisive level, suggesting that traders exercise caution and avoid taking on excessive risk. Vikram Subburaj, CEO of Giottus.com, recommends that long-term investors consider staggered accumulation near support zones instead of making large purchases at resistance levels.
On the derivatives side, cumulative crypto futures open interest has dropped to approximately $93.5 billion, reflecting a decrease in optimism following the bitcoin price bounce earlier this week. Major tokens such as bitcoin and ether have experienced capital outflows in futures markets, with the notional open interest declining more significantly than spot prices. Meanwhile, the long-short ratio continues to lean heavily towards short positions, indicating a bearish outlook.
The overall sentiment is echoed by falling participation in CME bitcoin futures, with open interest hitting its lowest levels for the year. On Deribit, one-month bitcoin puts are trading at a 7% premium to calls, signaling ongoing concerns regarding potential further declines in spot prices. A substantial portion of trading activity has shifted towards bearish strategies, with bitcoin put spreads accounting for 75% of the total block flow.
In other token-related news, the DFINITY Foundation has proposed an innovative strategy involving the burning of 20% of its cloud engine revenue, introducing a deflationary component directly linked to network usage for the Internet Computer (ICP). The remaining 80% is intended for node operators, replacing fixed emissions with performance-based incentives aimed at making ICP’s token supply more responsive to actual market demand. Following this announcement, ICP’s price rose by 6% over the last day, climbing from around $2.41 to $2.56, despite being down from a peak of $2.70 in recent times.
This price movement has been bolstered not only by DFINITY’s proposal but also by a positive sentiment shift resulting from Nvidia’s impressive earnings report, which highlighted the potential of artificial intelligence. ICP, along with other AI-linked tokens such as Render (RENDER) and Bittensor (TAO), appears to be benefiting from the renewed interest among investors in the AI-driven market.
