As Total Value Locked Exceeds $11,000,000,000 of Luna. Anchor protocol becomes the most used on Terra Blockchain.

As its ecosystem grows, the price of decentralized finance (DeFi) altcoin is skyrocketing. On the Terra blockchain, the Anchor Mechanism (ANC) is a lending and borrowing protocol. The project’s governance token, ANC, has risen 51.52 percent in just one week, from a seven-day low of $2.64 to a high of $4.00. Since then, Anchor Protocol has corrected and is now trading at $3.46.

According to cryptocurrency tracker DeFi Llama, Anchor Protocol’s total value locked has reached a new high of $11.21 billion. This is up from $7.36 billion a month ago, representing a 53 percent raise. In terms of TVL, Anchor is now the most used protocol on Terra blockchain.

The total capital contained within a Terra blockchain’s smart contracts is represented by its TVL. The current value of the assets is multiplied by the amount of collateral locked into the network to calculate TVL.

Anchor seeks to offer low-volatile rates on Terra stablecoin deposits, backed by a diversified stream of staking rewards from other significant blockchains. The project received a $450 million cash injection in mid-February. The current APY on the protocol is 19.38 percent.

Anchor Protocol claims it’s considering improving its tokenomics in a new Twitter thread. According to the idea, those who keep their ANC tokens locked up for one to four years will get greater voting power and ANC emissions.

“The higher the voting power and ANC distribution, the longer the lock-up period.”

Also, read – Altcoin stock price rises with huge investment

The history of altcoins, as well as their significant characteristics and distinctions from Bitcoin

The cryptocurrency industry is vast and overgrowing. When we considered the introduction of Bitcoin in 2009, we can see that the first Altcoin did not appear for another two years. Then, starting in 2013, the rate of Altcoin launches began to increase. It has continued to rise until now. More than 600 new cryptocurrencies were formed in 2017, making it impossible to keep track of them all.

Terra Blockchain genealogy can be used to classify altcoins in another way. For example, a slew of Bitcoin-like alternatives started from the ground up with a few tweaks thanks to a fork. When it comes to Altcoins, we can observe that many of them are forks of well-known and long-lasting cryptocurrencies like Bitcoin, Litecoin, and Ethereum. Every Altcoin, on the other hand, has something that sets it apart from the others, such as differences in a scripting language, transaction management, additional features or security, mining-based or not, with various consensus algorithms, and so forth. They may also differ from Bitcoin because they have distinct built-in parameters, such as the average time between block production or the size of blocks. 

The Market Cap, which is equal to the unitary cost multiplied by the number of coins in circulation, is an important indicator to understand Altcoin value. Using this metric, Bitcoin remains the most valuable cryptocurrency, followed by Ethereum, Terra Blockchain and Ripple.