Anchor Protocol (ANC) just soared over 150%. Here's why

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Anchor Protocol (ANC) just soared over 150%. Here's why

 Anchor Protocol (ANC) just soared over 150%. Here's why
Image source: © Alexanderushkevich | Megapixl.com

Highlights

  • Anchor Protocol (ANC) crypto is primarily a DeFi lending and borrowing platform founded by Terraform Labs' Daniel Shin and Do Kwon. 
  • On 23 May, ANC crypto has been witnessing a rally of over 150% and a significant volume rally of over 850% in the last 24 hours. 
  • On Monday, the ANC crypto was trading at US$0.236271 with a trading volume of US$39,86,40,887 over a day, according to CoinMarketCap.

Anchor Protocol (ANC) crypto is primarily a DeFi lending and borrowing platform, founded by Terraform Labs' Daniel Shin and Do Kwon, which offers up to 19.5% yield on stablecoin deposits. 

Anchor offers principal-protected stablecoins as collateral, and the borrowers can deposit Terra (LUNA) without losing control of their assets. At the same time, it is beneficial for the lenders as well as they can earn interest on their TerraUSD (UST) investments. 

Anchor protocol has been showing signs of revival after Terra's collapse, and over the past week, it finished as one of the top gainers of the week, registering gains of over 32.4%, according to CoinGecko.

Related read: Why did Santos Fan Token's (SANTOS) volume soar over 9600%? 

On 23 May, ANC's crypto has been witnessing a rally of over 150% and a significant volume rally of over 850%. 

Why is ANC crypto rallying?

ANC crypto's rally seems to be on the back of its announcement made on 21 May that it would be bridging their bETH tokens of Terra to Ethereum. The users can send their bETH tokens from the Terra protocol to Ethereum and swap them for stETH, thereby allowing the users to earn staking yields of over 3.8% APR. 

Termed the savings protocol, the ANC crypto allows its depositors to earn passive income while keeping volatility at bay to ensure stable returns. This helps in the increased adoption of UST and, subsequently, the adoption of the Terra project in DeFi, as per its whitepaper.  

Related read: What does Terra's (LUNA) realistic revival plan look like? 

Revival on the cards? 

The rally witnessed over the weekend has pushed the rally's momentum strongly towards ANC crypto. The ANC crypto is now attracting significant attention, with its RSI being placed at 30.16 on 23 May at the time of writing (4:39 AM GMT +1) from a low of 22.71 on 21 May. 

Image Credit: Trading View

Even the MACD line (in blue) indicates that it slowly is showing signs of moving up and nosed ahead of the signal line (in orange) and looks like it will get stronger. 

ANC crypto's price

The ANC crypto on Monday was trading at US$0.236271 with a trading volume of US$39,86,40,887 over a day, according to CoinMarketCap. The 320-ranked ANC crypto was up by 151.48% with a live market cap of US$7,83,99,283 with 34,78,40,416 ANC coins in circulation. 

What's heartening to see ever since ANC dropped to its all-time low of US$0.02473244 due to the Terra collapse, it has managed to show signs of recovery, and as it stands, it has managed to recover by 910% from its ATL. However, it's still significantly far away from its ATH of US$8.23, which it achieved on 21 May 2022. 

The recent developments seem to have caught the attention of the investors. They are keen to be back on ANC protocol and, with a rally of over volume, have got a significant boost of 866.25% in the past 24 hours. 

While the rallies over the past week have held ANC crypto in good stead, as a market participant, it's critical to note that crypto prices can change at any given point of time, as we witnessed recently. Therefore, one must be careful to do their research before entering the space. 

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