The Anchor Protocol price is still under pressure even after its market activity did relatively well. The ANC token is trading at $1.7100, which is slightly above this month’s low of $1.5855. It remains being about 72% below the highest level this year, bringing its total market cap to over $587 million.
Anchor TVL is rising again
Anchor Protocol is a leading blockchain project that is in the decentralized finance (DeFi) industry. It is a lending and savings platform that is known for delivering exciting rewards to its users.
According to its website, Anchor has a total value locked (TVL) of over $19.9 billion. Of these, the total deposits are more than $14 billion and a total collateral of more than $5.9 billion. The coin has a total yield reserve of over 198 million UST.
The Anchor Protocol’s performance has lagged in the past few months as investors reacted to the introduction of the semi-dynamic earn rate. This simply means that the coin’s earn rate will be adjusted every first day of the month.
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The built-in system updates the APY by + or minus 1.5%, with the ceiling being 20%. This system depends on the yield reserve. For example, if the yield reserve rises by 1.5%, the earn rate will also rise by 1.5%.
On the other hand, if the reserve rises by 3%, the earn rate will also rise by 1.5%. Many investors believed that this system was. On Sunday, the official Twitter account announced that the APY for the protocol for this month is about 18%.
The Anchor Protocol is also falling as investors react to the latest Prop 25, which increased the oracle timeout from 60 to 90 seconds.
Anchor Protocol price
The Anchor Protocol price has been in a strong bearish trend in the past few months as concerns about returns remain. The coin moved slightly below the upper side of the descending channel. It has also moved slightly below the 25-day and 50-day moving averages while the Stochastic Oscillator has moved slightly below the overbought level.
Therefore, the ANC token will likely resume the downward trend as bears target the lower side of the descending channel at $1.45. A move above the resistance level at $1.8 will invalidate the bearish view.