- Retrograde declared creating governance key for Terra.
- $ANC highlights a bullish outlook and offers a lucrative entry-level for enthusiasts.
- Anchor Protocol saw its market cap increasing by 33.58% from 24 February to 25 February.
- For now, the altcoin changes hand near $3.71, a solid price level where crypto investors can join the project’s ecosystem.
Anchor protocol uses the Proof-of-stake mechanism. That means individuals need to stake crypto to validate blocks. Meanwhile, validators can lose staked tokens whenever they act maliciously. Anchor boasts two elements. They include bAssets, the staked cryptos’ liquid version, and money markets (stablecoin USTs pool). That comes from individuals that offer capital for others to borrow.
The swift price surge by $ANC contributes to the increased Anchor Protocol popularity. The token’s weekly price analysis shows it touched 7-day lows on 18 February, when ANC explored the lows of $2.04. However, the alt saw a whopping 73.54% surge, hitting $3.55 on 25 February. While publishing this content, the altcoin rides 24hr bullish waves at $3.71.
Anchor Protocol attracted many when it gained 33.58% within a day, from 24 February to 25 February. That way, when $ANC climbed from a low of $2.65 to $3.54.
Retrograde revealed plans to build Terra’s governance master key. That way, individuals participating in governance can decide on the Terra ecosystem’s fate. The positive developments had $ANC joining the top 100 crypto-list, ranking 85 by value (Coinmarketcap). Moreover, Anchor’s total value locked climbed to $11.8 billion.
Also, there was an AMA session by Anchor Protocol, discussing $ANC ve (vote-escrowed) economics with renowned guests atari7600, Retrograde’s tetrisretro, retropong, and Jose Maria Macedo. Moreover, the nonprofit Luna Foundation Guard raised $1 billion via private token sales.
Anchor Protocol’s team knows that UST’s 20% interest is not sustainable, and the interest rate might drop with time. Furthermore, the $ANC token has a limited issuance. It boasts $1 billion in maximum supply and can hit the target by 2024. That means borrowers have a few years to enjoy incentives.
Anchor Protocol might stay sustainable while providing attractive interest rates on UST deposits after the $ANC rewards exhaust. Meanwhile, the project develops Anchor Protocol V2 to allow borrowers to keep interests in staked tokens used as collateral in borrowing UST. It will also introduce stake SOL on Solana, staked ATOM on Cosmos, and AVAX on Avalanche, ensuring additional collateral sources.