Earlier last week, the total value locked inside the Anchor Protocol’s liquidity pools reached an all-time high. Anchor Protocol (ANC) resumed its upward trend in May after falling by more than 70% in the previous two months.
Anchor Protocol has been surging today even as the broader crypto market sees a major sell-off. The coin is expected to continue outperforming the rest of the market over the next 24 hours or so. ANC has gained nearly 13% even as the broader market sees a drop of around 7%, the DeFi protocol has also seen its TVL increase by 2% over the last 7 days and the trading volume for ANC has also shot up by 300% over the last 24 hours.
ANC’s price rebounded by a little over 42.50% between May 1 and May 6, reaching $2.26, its highest level in three weeks. Nonetheless, the token experienced a selloff on May 6 and May 7 after ramming into what appears to be a resistance confluence.
The recent 13% increase in 24 hours has come as a pleasant surprise to ANC investors. Outperformance of the larger market is always a positive indicator. This tendency, however, is unlikely to endure long. In fact, we anticipate that the gains will be very short-lived unless market mood improves.
As a result, expect ANC to show increases over the next two or three days before pulling back and following the overall trend in the cryptocurrency market.
ANC is now trading around 1.86$, if the price goes back to 1.6$ and spikes, buying may be considered. However, we still have to take a comprehensive look at the current market, with the decline in most coins the bullish assessment of ANC still comes with risks.
A jump in TVL right now is not something to take lightly. Since the start of the year, DeFi Protocols across the board have seen a sharp decline in total value locked. The fact that Anchor still has nearly $19 billion in TVL right now is a big plus.
Anchor Protocol is the biggest DeFi protocol on the Terra (LUNA) network. It has one of the largest TVLs too. The DeFi protocol has also continued to offer low-risk returns for UST deposits. Users continued to commit funds to Anchor primarily due to its steeper annual yield of 18%. With these fundamentals, it is likely that the project will continue to grow very steadily into the future. It is therefore a worthy investment in DeFi.
Anchor has also expanded its services to Avalanche (AVAX), another base-layer blockchain, and now plans to function atop the Polkadot (DOT) ledger.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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