Anchor Protocol worth went parabolic on Thursday as traders cheered the robust efficiency of cryptocurrencies related to Terra. The ANC token jumped to a excessive of $0.12, which was the very best degree since August 9. It has jumped by over 65% from its lowest degree in August of this yr.
Why is ANC worth hovering?
Anchor Protocol was the most important a part of Terra’s ecosystem. It was a platform that allowed folks to deposit Terra USD stablecoin and earn distinctive returns. In most intervals, the platform had APY of over 20%. ANC was the native token for Anchor Protocol’s ecosystem.
At its peak, Anchor Protocol was one of many greatest decentralized finance (DeFi) platforms on the earth with a complete worth locked (TVL) of over $17 billion. All this got here crumbling down in Might when Terra USD misplaced its peg resulting in the collapse of Terra’s ecosystem.
Since then, no exercise has been entering into Anchor Protocol. By design, it solely labored with Terra USD, whose worth crashed from $1 to under $0.0001. On the identical time, a number of cryptocurrency exchanges like FTX determined to delist ANC.
Anchor Protocol worth has staged a powerful restoration up to now few days due to the robust worth motion in Terra’s ecosystem. Prior to now few weeks, Terra Basic USD (USTC) has surged to a excessive of $0.08. And in keeping with CoinMarketCap, its whole market cap has jumped to over $458 million.
Equally, Terra Classic has jumped by greater than 100% up to now seven days, giving it a market cap of over $3 billion. The brand new model of the coin referred to as LUNA has additionally rebounded. Different cash in Terra’s ecosystem like Mirror Protocol and Astroport have additionally risen.
Some analysts imagine that this rebound of Anchor Protocol worth is a part of a pump and dump scheme for the reason that coin is thinly traded.
Anchor Protocol worth prediction
The four-hour chart reveals that the ANC worth has been in a powerful bullish development up to now few days. Alongside the way in which, the coin has managed to maneuver above the necessary resistance degree at $0.1026, which was the bottom degree on July 21. Because it rose, Anchor Protocol moved above the important thing resistance at $0.1120 and $0.1187.
It has additionally moved above the 25-day and 50-day shifting averages whereas the Superior Oscillator has moved above the impartial level. Subsequently, the coin will seemingly hold rising as FOMO units in. This might see it soar to a excessive of $0.15.