Anchor [ANC]: Troubling days ahead amid deteriorating deposit-lending volumes

ambcrypto.com:

It is rare to see week-long ecosystem growth, on one hand, followed by a week-long drop in prices on the other. But that has been the case with Anchor as it rose to, correction fell to become the leader of the biggest losers this week.

ANC fell by 32.72% from where it was this time seven days ago, and while the broader market cues can be blamed for the most part, its investors’ apprehension has also contributed to the present conditions. On 11 April alone, the token dropped by 20.29%.

Anchor Price Action | Source: TradingView – AMBCrypto

Although the total value locked on the network did note a significant rise in the last couple of days, the most important one came from its partnership with Acala to boost the decentralized stablecoin space on Terra and Polkadot. 

Acala will be expanding Anchor’s collateral options with the addition of Liquid DOT (LDOT) and Liquid KSM (LKSM), which will unlock the latent borrowing demand for TerraUSD (UST) stablecoin within the Acala and Kusama ecosystem.

Acala further explained how they would be utilizing aUSD for the same purpose saying,

“Acala & Anchor will also establish deep liquidity pools for aUSD (The native decentralized stablecoin of Polkadot & Kusama) & UST on Acala, serving as a gateway into the Polkadot ecosystem for UST users.”

Thus this way, the partnership represents a significant milestone in uniting the Terra and Polkadot ecosystems to bring decentralized money to the masses. And at the same provide users with access to more liquidity and yield opportunities.

Furthermore, the protocol’s native token ANC was also listed on Crypto.com this week.

But regardless, Anchor’s primary function as a lending protocol failed to draw in any substantial investment as the Anchor Treasury