Anchor’s token price goes down after many signs of overbought
Anchor Protocol is a Terra blockchain-based decentralized money market that pays UST depositors a 20% annual percentage yield. It allows borrowers to use bonded LUNA (bLUNA) to collateralize UST loans.
The governance token of Anchor, ANC, has dumped over 25% in the last 24 hours after a 300% rebound in a month. At the time of publication, the token was trading at $3.879.
After this decrease, the all-time high in ANC’s price is now $6.18, and it comes after rising price momentum appeared to have run out of steam.
For a considerable portion of its run, prices were overbought, with many observers expecting a decline.
Besides, following the news that prominent DeFi developer Andre Cronje is retiring, the value of hundreds of DeFi tokens has dropped sharply.
On Sunday, Anton Nell announced on Twitter that he and Cronje were “closing the chapter” on the development of decentralized finance.
Solidly, a recently released hybrid automated market maker (AMM) has lost as much as 75% in one day. Cronje established Keep3r, an automation platform, and Iron Bank, a lending platform, both of which are down 25% and 50% respectively.
The entire DeFi market is in serious decline. However, Anchor is still number 1 in term of total value locked (TVL) in Terra ecosystem. It is reported that the Anchor has reached over $13.6M UST, and still has a position in top 6 TVL rankings, according to analytics site DeFi Llama.
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