I keep my Dracs as wet as I can manage (they do dry out a bit in summer, when they are not very happy). I have found those baskets to be great for keeping things both wet and airy. Either sphagnum, or recently I've been using New Zealand tree fern, which I like even better. This stuff... don't know how widely available it is, but it has some terrific characteristics.
https://www.amazon.com/s?k=new+zeala...tr-ranker_1_15 It is also sold as reptile bedding, just different packaging.
Dracs definitely like cool and damp. These little ones don't tend to collapse during the day like the big ones do, seem a little more tolerant of warmth (though they don't particularly like it)