The Anchor Protocol (ANC) token has lost more than 70% of its value in the past 24 hours, due in part to a sharp decline in total protocol deposits and the inability of the TerraUSD (UST) steblecoin to match the dollar peg.
According to CoinGecko, Anchor’s own token fell from $0.85 to $0.20.
“The ANC price collapsed because of the loss of confidence in UST and the Terra ecosystem as a whole,” said Eden Au, director of research at The Block Research.
Anchor is a credit protocol in the Terra network that pays out up to 20% income to UST depositors through yield reserves.
The protocol generates new ANC tokens to fund Anchor’s lending and borrowing activities.