Anchor Protocol ($ANC): Price Updates, Recent Developments, Future Events, Community
- Retrograde announced that it is building the governance master key for Terra.
- Anchor Protocol ($ANC) is bullish and provides an excellent entry point for investors to get on board.
- Anchor Protocol has seen an increase in its market capitalization and value by 33.58% from February 24 to February 25.
- With its value point at $3.40, $ANC is at a solid price point through which many cryptocurrency investors can enter its ecosystem.
Anchor is based on the Proof-of-Stake (PoS) blockchain concept, where validating blocks in the chain requires anyone to stake cryptocurrencies.
When the validators are chosen to confirm or not to confirm the validity within a block, they lose any staked coins, assuming they behave maliciously.
Anchor has two main elements. bAssets are a liquid version of the cryptos staked. Then there’s the money market, which is a pool of stablecoin USTs. These are derived from people that provide their capital for other users to borrow.
Price Updates
The rapid price increase of Anchor Protocol ($ANC) has been one of the main reasons why it has boosted in terms of its popularity.
When we go over the performance of the token throughout last week, its 7-day low was on February 18, when the token decreased to $2.04 in value. Then it spiked in value to $3.54 on February 25, an increase of $1.5 or 73.53%, and trades at $3.40 at the time of writing, a decrease of $0.14 or by just 3.95%.
The seven-day price chart for Anchor Protocol ($ANC). Source: Coinmarketcap
In the last 24 hours, the token jumped to a value of $3.54 on February 25, 2022, right after it saw a dip to $2.65 on February 24. This marked an increase in value of the Anchor Protocol ($ANC) token of 0.89 or by 33.58% throughout the span of just a day.
The 24-hour price chart for Anchor Protocol ($ANC). Source: Coinmarketcap
Recent Developments
On February 25, 2022, Retrograde announced that it is building the governance master key for Terra. The ones that engage in governance will be able to decide the fate of the Terra ecosystem.
Anchor Protocol also broke the top 100 token list on CoinMarketCap and became the 85th cryptocurrency in terms of market capitalization. Anchor also reached $11.8 billion in total value locked.
We also saw Anchor Protocol’s AMA session, where they discussed $ANC vote-escrowed (ve) economics with special guests José Maria Macedo, retropong , atari7600, and tetrisretro from Retrograde and danku_r as a host.
The Luna Foundation Guard (LFG) nonprofit that aims to scale the Terra blockchain ecosystem also raised $1 billion in a private token sale.
Future Events
The team behind the Anchor Protocol is aware that a 20% interest rate on UST isn’t sustainable in the long term and it is likely that this interest rate will decline over time.
$ANC token issuance is also limited. It has a maximum supply of $1 billion and this can be reached as soon as 2024. This means that there are only a few years of incentives left for the borrowers from which the anchor protocol depends for its income.
Once the $ANC rewards run out, it is crucial that the Anchor Protocol is sustainable while offering an attractive interest rate on UST deposits.
The Anchor Protocol team is developing Anchor Protocol V2, which will change the protocol in three significant ways. First, it will let borrowers keep the interest earned on any staked assets that they are using as collateral to borrow UST. Second, it will introduce staked $SOL on Solana, Staked $AVAX on Avalanche, and staked $ATOM on Cosmos as additional sources of collateral.
Then, it will improve the borrowing interface, so that borrowers can see exactly how much UST they can borrow in dollar terms before being liquidated.
On the Flipside
- Aside from its value, The Anchor Token ($ANC) can be deposited as a means of creating new governance pools, which can then be voted on by users who have staked $ANC. It is designed to get a portion of all of the yield and, in turn, allows its value to scale linearly with Anchor’s assets under management (AUM).
Community
The Twitter user @FynnToTheMoon wrote the following:
Just 8 days ago we were at $10 billion TVL on @anchor_protocol
— Fynn (@FynnToTheMoon) February 25, 2022
Today, at a massive $11.8 billion. More and more people are seeing the true value of Anchor and Terra
$100bn TVL incoming! pic.twitter.com/Jpkoxu2Vh5
@TheRyanLion wrote that $ANC just broke the Top 100 Cryptocurrencies by Market Cap
Just noticed $ANC broke into the top 100 Cryptocurrencies by Market Cap.
— RyanLion (@TheRyanLion) February 21, 2022
I believe this is the first time a @terra_money altcoin has hit the top 100? ??
Congratulations @anchor_protocol pic.twitter.com/hcgMdOVZhw
Another Twitter user, @kale_abe said the following:
$LUNA up MASSIVE today . Best use case (with $UST and @anchor_protocol) that I can think of in #Crypto right now… pic.twitter.com/cdegNMKTpW
— Kale (@kale_abe) February 25, 2022
Why You Should Care
Anchor Protocol is one of the more promising projects as of recently and has genuine potential for growth going forward.
Read more: https://dailycoin.com/anchor-protocol-anc-price-updates-recent-developments-future-events-community/
Text source: DailyCoin.com
