Reasons Behind Anchor Protocol Heavy Downtrend

At the time of writing, it is trading at $0.2863, with a 24 hours decrease in price by 36.43%. In the past 7 days, the price of Anchor Protocol has fallen by 84.7% according to CoinGecko.

Some of the reasons for the present decline in the price of ANC are:

The present market downtrend

In most market conditions, the price of altcoins moves in the direction of the trend of Bitcoin (BTC). With the increase in the volatility of the market, the price of Anchor Protocol (ANC) joined most cryptocurrencies to fall as the present cycle last. The continuous price decline makes retail and short-term investors sell more, so as to safeguard the remaining balance in their assets. This selling pressure makes the market to fall further since sellers are in charge.

The fall in the price of TerraUSD

TerraUSD (UST) is one of the major stablecoins used in the Anchor Protocol ecosystem for its lending services. With the implosion that happened on the Terra network, which saw both its native token LUNA and its Stablecoin TerraUSD (UST) to decline heavily, the price of Anchor Protocol's native token ANC was also affected.

Delay in transactions completion on the Avalanche network

Users of xAnchor experienced delays in their transactions being completed on the Avalanche network, due to overload and network congestion. Since created unnecessary panic within the Anchor Protocol ecosystem, which saw the price of ANC fall greatly and becoming of the major losers among the top Cryptocurrencies in the past few days.

Conclusion

We have seen some of the reasons why the price of Anchor Protocol native token ANC dips heavily. It trend could reverse if the general market trend gets bullish.