Anchor Protocol’s ANC token dives 65% as Terra woes deepen

Anchor Protocol (ANC) is down by 65% in the past 24 hours, falling sharply in intraday selling as crypto bleeding hit tokens in the Terra ecosystem hard.

The ANC token, which traded at highs of $0.85 on Wednesday morning, fell as lows as $0.14 as Terra’s LUNA and UST bled out. At the time of writing, ANC/USD is trading around $0.29, still off its 24-hour highs.

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The slight uptick, which is in danger of fading as selling resumes across risky assets, helped push the token off the sub-$0.20 price mark to stem the rot. This followed a broader market reaction to the US inflation data release, with stocks and Bitcoin briefly higher.

At its current price levels, Anchor has lost 82% of its value in the past week and is currently down 97% from its all-time high of $8.23 reached in March 2021.

While the declines for ANC come amid widespread bear market losses that has wiped billions of dollars off the crypto market valuation, Anchor’s has to do with the massive dumps hitting Terra (LUNA) and TerraUSD (UST).

After losing its peg to the US dollar, the UST stablecoin fell as low as $0.25 for a 75% de-peg before moving higher today after Terraform Labs CEO Do Kwon announced measures to re-establish the $1 peg. The stablecoin is currently at $0.59.

The LUNA token also fell sharply on Wednesday, down to $2.29 for losses of over 93% over the past 24 hours.