The 4th-largest decentralized finance (DeFi) protocol until May 6, Anchor (ANC), is worth nearly nothing today.
Anchor Crashes with Terra’s Wreckage
Besides being the leading network on the Terra blockchain, Anchor was among the fastest-growing lending network in the financial industry. However, Anchor Protocol sustained a massive slump as TerraUSD (UST) lost the dollar peg, as LUNA saw dramatic crashes. Expectedly, market players escaped the marketplace to prevent losses.
Anchor’s native coin, ANC, noted colossal declines within five days, losing 95.85% of its value. That saw the token trading at $0.08 low from $2.13. It even dropped further yesterday, hitting $0.016 at one moment.
Nevertheless, the DeFi coin recorded a significant recovery, registering a 1,471% upswing, closing at 26 cents. Meanwhile, market players appeared not to case as they withdrew their deposited cash from the lending platform.
Remember, Anchor operates on UST. Thus, the current lows weren’t a surprise as the stablecoin is currently worth $0.16 lows. As a result, deposits dropped to 1.4B UST ($229 million) from 14B UST ($14 billion) owing to the price slump.
Struggles On All Angles
Also, Anchor’s total value locked plummeted to $307 million. That pushed the network’s rank to #60 from #4. Recoveries remain impossible as the protocol operates on the Terra chain. For now, the blockchain struggles from all corners as Terra validators develop plans to reconstruct the platform.
Moreover, Anchor notified its investor to avoid interacting with EthAnchor & xAnchor or bridging $bATOM, $bSOL, $sAVAX, or $bETH collaterals as the Terra blockchain is out of operation.
Meanwhile, everything relies on Terra and the network’s primary coin – LUNA. With LUNA supply at 6.9 trillion with the token trading near $0.0002237, investors can hope for actionable steps on the recovery plan. Nevertheless, Terra might take time to regain investor confidence.
Meanwhile, the crypto market continued to struggle over the past day. Bears prove dominant as they erase any recovery attempts within no time. Bitcoin failed to steady beyond $30,000 after nearing $31,000. While writing this blog, Bitcoin traded at $29,640.24.
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