Scan to Download ios&Android APP
What is Anchor Protocol and its native token ANC?
How does Anchor Protocol work?
The collapse of Terra
What does Terra 2.0 mean for Anchor Protocol?
Anchor Protocol token (ANC) price analysis
Anchor protocol price prediction: Targets for 2022, 2025 and 2030
By Mensholong Lepcha and Raphael Sanis
Edited by Alexandra Pankratyeva
Terra’s flagship decentralised finance (DeFi) platform Anchor Protocol saw its native token ANC crash in early May following the depegging of algorithmic stablecoin TerraUSD (UST).
There is uncertainty over the future of ANC after Terra forked into a new chain without its fallen stablecoin. Terra’s plan to leave out UST from its new chain has raised questions about the viability of the Anchor Protocol whose main offering was its near 20% interest returns on UST deposits.
The troubling history of Anchor Protocol has recently been recognised by the FTX exchange who delisted the ANC cryptocurrency on the 12 September.
However, the price of ANC is unusually surging following this news. As of 13 September, it was up 41% over the past seven days.
Anchor is a savings protocol built on the Terra blockchain which aims to offer low-volatile yields on UST deposits. The platform was launched by Terraform Labs on March 17, 2021.
Anchor Token (ANC) is the protocol’s native and governance token. Tokens can be deposited to create new governance polls, which can be voted on by users staking ANC. ANC tokens are also issued to reward borrowers.
You voted bullish.
You voted bearish.
Give ANC/USD a try
According to its website, borrowers can borrow UST by using cryptocurrencies such as LUNA and ETH as collateral. Anchor Protocol is also designed to offer returns as high as 20% to lenders or depositors on their UST deposits.
Anchor Protocol’s market-beating UST deposit returns attracted yield-chasing investors as total value locked (TVL) on the protocol rose to over $17bn by early May 2022, data from DeFi Llama showed.
Anchor Protocol quickly emerged as a top DeFi platform in the blockchain sector in terms of TVL alongside the likes of Ethereum-based protocols Aave and Curve in 2022.
As UST started depegging between 7 May and 8 May, Anchor Protocol saw its deposit drop about 20% in the span of two days. Capital flight from Terra’s ecosystem ensued while UST, LUNA and ANC prices crashed in the days that followed.
By the time the dust settled, TVL on Anchor Protocol had sunk from an all-time high of $17.15bn on 5 May to below $30m on 31 May.
Today (as of 13 September), Terra has hard forked into a new chain without UST. Anchor Protocol’s future remains uncertain. The savings protocol’s dependence on UST for its borrowing and lending operations makes the once-thriving platform at risk of being left out of Terra 2.0’s plans.
How dependent is Anchor Protocol on Terra’s algorithmic stablecoin, UST? Weeks before the crash, 72% of UST’s total circulating supply, then worth about $13.15bn, was locked in the Anchor Protocol alone. Moreover, Anchor Protocol’s high stablecoin yields were only open to UST deposits.
Following the collapse of algorithmic stablecoin UST, Terra was in a limbo as investor confidence in the ecosystem hit rock bottom.
Terra’s native token LUNA, which once sat among the top ten most valuable cryptocurrencies, slumped from its record high of $119.18, hit less than two months ago, to trade at about $0.0003, as of 13 September.
On 26 May, Terra’s community passed the Terra ecosystem revival proposal with 65.5% of participants voting to create a new blockchain without UST.
According to the plan, the new chain will be called Terra, while the old chain will be known as Terra Classic. New LUNA2 tokens will be airdropped to Luna Classic stakers, Luna Classic holders and UST holders.
3/ It will effectively create a new Terra chain without the algorithmic stablecoin. The old chain will be called Terra Classic (token: $LUNC), and the new chain will be called Terra (token: $LUNA). The chain upgrade will commence a few hours after the Launch snapshot.
The plan also put out a list of “essential apps” whose developers would receive funding and support for building on Terra’s new chain. Anchor Protocol was not mentioned in the list of “essential apps that must exist in any web3 ecosystem to be viable”.
As of 13 September, there has been no communication from Anchor Protocol on its roadmap in the aftermath of Terra’s hard fork.
Users on Anchor Protocol’s official forum complained about its website “not working” and being unable to withdraw their collateralised assets. Some voiced concerns about Anchor Protocol’s customer support.
Many questioned if Anchor Protocol will exist on the new Terra Chain. “Will $ANC token and Anchor Protocol migrate to Luna 2.0?,” asked a user named Sabri. “Same question here, and I can’t find any answer,” wrote user s_ice in the same thread.
Anchor Protocol has not put out any update regarding its future on its website and on Twitter.
It did tweet on the 8 June that the community passed a proposal to freeze the platform’s earn and borrow functions.
Anchor Protocol’s ANC token launched via an initial decentralised exchange offering (IDO) on 16 March 2021 at an opening price of $0.05. By 19 March 2021, ANC surged to an all-time high of $8.31, data from CoinMarketCap showed. Since then, ANC has been unable to scale new peaks and crashed to trade around $0.13, as of 13 September 2022.
According to the price chart, ANC saw strong gains in the first quarter (Q1) of 2022 as more investors deployed their capital in the Terra-based savings protocol. However, ANC was unable to build on this momentum as investor sentiment turned sour on the back of global monetary tightening pressures.
ANC plunged to an all-time low of $0.0504 on 13 May 2022.
ANC/USD price chart, all-time performance
The FTX cryptocurrency exchange announced on 6 September that it was delisting ANC from its platform. The token was removed from its spot and future markets on 12 September, with deposits and withdrawals also being suspended.
It has unusually been rallying since the delisting announcement. At the time of writing, on 13 September, ANC was trading at $0.13, up 41% over the past seven days.
Will the ANC token survive the latest crash? Read on to learn the latest Anchor Protocol price prediction for 2022 and beyond.
As of 13 September, Coin Codex’s short term ANC coin price prediction for 2022 saw the token having grown 35% to a target price of $0.18 by 12 October.
However, Coin Codex added that technical indicators showed sentiment for ANC was ‘bearish’, while the fear and greed index indicated ‘fear’ among ANC investors.
Wallet Investor’s ANC crypto price prediction expected ANC/USD to have fallen to $0.016 in a year. Its five-year ANC price prediction suggested the token could trade at an average price of $0.02 by September 2027.
Price Prediction’s ANC price prediction suggested that the coin could have fallen to an average price of $0.09 in 2022. However, its longer-term forecast was bullish with its anchor protocol price prediction for 2025 that gave an average price of $0.42.
DigitalCoinPrice’s ANC crypto price prediction expected ANC to trade at an average price of $0.18 in 2022. Its anticipated steady growth for the cryptocurrency. The site’s anchor protocol price prediction for 2030 gave a maximum price of $1.94.
When looking at ANC token pricepredictions, you should remember that cryptocurrency markets are very volatile. Algorithm-based forecasts and analysts’ expectations are based on past performance, which never guarantees future results. Predictions can be wrong.
You should do your own research, build your own outlook for ANC and base your decision to trade according to your risk tolerance and trading goals. And never trade money you cannot afford to lose.
As of 13 September, ANC has lost over 96% of its value year-to-date on the back of Terra’s collapse in May 2022. It’s yet to be seen what the future holds for the token. You should do your own research and base your decision to trade ANC according to your risk tolerance. And never trade money you cannot afford to lose.
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the ANC token is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. And never invest money that you cannot afford to lose.
ANC prices crashed alongside UST and LUNA in May 2022 after the depegging of algorithmic stablecoin and capital flight from the Terra ecosystem. Anchor Protocol’s future remains uncertain after Terra hard forked into a new chain and abandoned UST in the process.
Whether you should invest in anchor protocol is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research and never invest more money than you can afford to lose because prices can go down as well as up.
As of 13 September, the anchor protocol crypto price prediction from DigitalCoinPrice suggested that the token could have passed $1 by 2030. But Coin Codex warned that the current sentiment was bearish.
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether Gravy is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. And never invest money that you cannot afford to lose.
There are currently no responses for this story.
Be the first to respond.
Got a trading idea? Try it now.
Refer a friend!
Invite like-minded traders to open a CFD trading account with us and earn up to $100
Join the 427.000+ traders worldwide that chose to trade with Capital.com
1. Create & verify your account
2. Make your first deposit
3. You’re all set. Start trading
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.40% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Risk Disclosure Statement
The value of shares and ETFs bought through a share dealing account can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.
Risk warning: сonducting operations with non-deliverable over-the-counter instruments are a risky activity and can bring not only profit but also losses. The size of the potential loss is limited to the funds held by us for and on your behalf, in relation to your trading account. Past profits do not guarantee future profits. Use the training services of our company to understand the risks before you start operations.
Capital Com SV Investments Limited is regulated by Cyprus Securities and Exchange Commission (CySEC) under license number 319/17. Capital Com SV Investments Limited, company Registration Number: 354252, registered address: 28 Octovriou 237, Lophitis Business Center II, 6th floor, 3035, Limassol, Cyprus.