in

Anchor Protocol ($ANC): Price Updates, Recent Developments, Future Events, Community

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

Community

The Twitter (NYSE:TWTR) user @FynnToTheMoon wrote the following:

Anchor Protocol is one of the more promising projects as of recently and has genuine potential for growth going forward.

EMAIL NEWSLETTER

Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

Error: Contact form not found.


You can always unsubscribe with just 1 click.

Continue reading on DailyCoin


Source: Cryptocurrency - investing.com

Ethiopia launches fund to lure billions of dollars in foreign investment

Why decentralization isn’t the ultimate goal of Web3