A decentralized finance (DeFi) altcoin is surging in price as its ecosystem takes off.
Anchor Protocol (ANC) is a lending and borrowing protocol on the Terra (LUNA) blockchain.
The project’s governance token, ANC, rallied from a seven-day low of $2.64 to a high of $4.00, marking gains of 51.52% in just one week.
Anchor Protocol has corrected since and is currently trading at $3.46.
The price rise comes as Anchor Protocol’s total value locked has skyrocketed to a record $11.21 billion, according to crypto tracker DeFi Llama. That’s up from $7.36 billion one month ago, an increase of more than 53%. Anchor is currently the top protocol on Terra in terms of TVL.
The TVL of a blockchain represents the total capital held within its smart contracts. TVL is calculated by multiplying the amount of collateral locked into the network by the current value of the assets.
Anchor aims to provide low-volatile yields on Terra stablecoin deposits with a rate powered by a diversified stream of staking rewards from other major blockchains. The protocol currently offers 19.38% APY.
In mid-February, the project received a $450 million capital injection.
The Anchor Yield Reserves have received a $450m top-up and now sits at $507m. https://t.co/wqwPH7pTxE
— Anchor Protocol (@anchor_protocol) February 18, 2022
In a new Twitter thread, Anchor Protocol says it is exploring the idea of upgrading its tokenomics. According to the proposal, those who lock up their ANC tokens between one and four years will receive increased voting power and more ANC emissions.
“The longer the lock-up period, the higher the voting power and ANC distribution.”Check Price Action
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Natalia Siiatovskaia/Tithi Luadthong