Anchor Protocol Price Prediction: Is There A Future For ANC?

Summary:

Our Anchor Protocol price prediction has just flipped bearish due to the sudden collapse of Terra ecosystem.

Our Anchor Protocol price prediction has flipped bearish for obvious reasons. The collapse of Terra UST has put a huge question mark over the future of the top lending protocol. On 13^th May 2022, the ANC coin completely collapsed along with UST. The price dipped to the lows of $0.024, signalling a massive capitulation from the holders.

Nevertheless, the native asset of Anchor Protocol started to recover after the announcement of Terra 2.0. At the point of writing, Anchor Protocol’s price is trading at $0.30, which is 96% below its March 2022 ATH of $8.23. Such a massive collapse has reduced the value of investors’ holding to pennies.

According to Anchor Protocol news today, the platform TVL has decreased by 95% in just 3 weeks. Currently, there is $987 million locked on the lending protocol. The TVL was sitting at $17 billion before the de-pegging of Terra UST. This suggests that most investors have lost faith in the platform and have moved their capital to other protocols.

Since the announcement of Terra 2.0 by Do Kwon, DeFi protocols like Anchor, Nexus, Prism and Astroport have signalled their support. These protocols would be migrating to the new Terra chain. Many crypto veterans are sceptical about the new Terra chain launch. Therefore, all the projects moving to the new chain might have to build their audience from scratch.

Anchor Protocol Price Prediction

Technical analysis of ANC crypto shows that the coin was in a downtrend even before the Terra LUNA fiasco. On 6^th May, Anchor Protocol’s price was trading at $2.33 just moments before UST lost its peg. The price decreased by 98% in the next one week and dipped to $0.024 on 12 May. However, the price has just had a relief rally to $0.59 this week, and the volatility is likely to continue till the launch of Terra 2.0.

Any ANC price prediction massively depends on the success of the Terra 2.0. The team might have to pull something extraordinary out of their hat to restore their user base.