Is The Price Of $ANC Rising Amid The Crypto Market Crash?

While the entire crypto market is struggling to come to terms with the sudden crash in price after an initial market recovery in the last couple of days, ANC recorded a positive performance.

It appears that the Anchor Protocol (ANC) token is not subjected to the same market movement as others, as its price surged in the past 24 hours, evading the plunge that the general market has been into. Traders are now seeking exposure to the Anchor Protocol’s significant yield.

As a result, ANC was previously trading at 13% with a $5.5, which saw it attain a 10-month and a total market cap of $1.4 billion.

The 20% Yield on Offer

ANC is creating the Anchor investment project, which is a decentralized lending network built by the Terra developers. By investing in the project, depositors of Terra USD are offered a 20% yearly interest rate, which is among the most effective rates among other stablecoins.

There has been a widely held opinion that the 20% yield is at the focal point of interested traders, and it is what attracted them to the project in a period where the crypto market is getting more volatile. The ANC tokens are given out as incentives to depositors for dumping their funds on Anchor, and the protocol regularly burns ANC to support its price. On the other hand, LUNA, another UST token, rose by 79% last month.

Throughout last month, stablecoins have led the trading charts by having the most significant trading volume among other cryptos in the industry. The tension in Eastern Europe is now sending investors toward investing in safe-haven funds.

ANC Among Binance Launchpool

Last month, the ANC token was added to the Binance Launchpool, through which traders were able to earn ANC tokens by staking either LUNA, BUSD, or BNB tokens for a lock-in period of 21 days. This turned out to be the spark for ANC as it surged to 255% by pulling itself out of previous lows.

According to multiple reports, a Terra-linked community, The Luna Foundation Guard, recorded a $1 billion token sale to set the tone for establishing a Bitcoin reserve for UST. The UST’s status as a stablecoin was uplifted following the move, which is expected to maintain the Anchor yield project.

The increased borrowing from the Anchor platform has seen the developers propose a move to a semi-dynamic yield system to keep up with the changes in the number of users in the protocol.

Furthermore, as more and more investors flood the protocol, another yield system might be proposed by categorizing the deposits the network can operate to ensure efficiency. Additionally, investors might be tempted to go with the type of yield that they are prepared to stake on for the period they want.

There is always an opportunity to formulate new investment ideas to attract investors who have the funds to deposit. This is driven by the continued volatility of the crypto market.

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