The Ankr price has crawled back in the past few days as investors embrace the web 3.0 industry. The token is trading at $0.07590, which is about 32% above the lowest level last week. Still, this price is about 65% below its all-time high of $0.2190.
Its market capitalization has declined to about $626 million, making it the 112th biggest cryptocurrency in the world. In this article, we will look at what Ankr is, how it works, its price history, and what to expect in the coming months.
Ankr Protocol is a fast-growing blockchain project that is in the web 3 industry. For starters, web 3 is a highly controversial industry that is widely seen as the next big thing in the internet industry.
The idea behind web 3 is simple. Presently, some of the biggest tools used in the internet are centralized in nature. As a result, they are generally controlled by a certain company that has a profit incentive. Some of these projects are Google Drive, Microsoft OneDrive, and even Facebook.
Web 3 seeks to change this model by decentralizing the ownership of projects. For example, it seeks to promote projects that are owned by the community. Instead of storing files in a project owned by Google, you can store them in a decentralized platform.
Therefore, the Ankr Protocol is a project that aims to provide the infrastructure needed to build decentralized applications in the web 3 industry.
Who founded Ankr Protocol?
Ankr Protocol was started by a team of computer scientists led by Chandler Song. the other co-founders of the protocol are Ryan Fang and Stanley Wu. Ankr is headquartered in San Francisco, and over the years, the developers have raised $27.3 million from a group of investors led by JD Capital and NEO Global Capital.
Ankr Protocol integrations
One of the reason why the Ankr price has done well over the years is that its open-source project makes it easy for people to integrate with other chains. Today, Ankr Protocol has integrated with a number of blockchain projects.
The most important Ankr integrations are with Ethereum, Polkadot, Kusama, Avalanche, Polygon, Fantom, and Avalanche, among others. This integration was enabled by the launch of the Ankr Protocol, which was launched in October 2018.
Ankr integrated with the Binance Smart by implementing the Erigon upgrade. As a result, the developers managed to reduce the required BSC archive node from 17TB to just 1.2TB.
What is ANKR coin used for?
Powering the Ankr protocol is the ANKR token. It is the native token for the ecosystem just as AVAX is the token for the Avalanche network. Similarly, BSC is the native token for the Binance Smart Chain network.
The ANKR token makes it possible for people to vote for changes in the network. It also makes it possible for people to earn by just staking the coin.
Most importantly, $ANKR is used exclusively by developers to pay to access features in the network. It will also be the native token for the Ankr DAO.
Ankr price history
Like all cryptocurrencies, ANKR price has enjoyed a rollercoaster. According to Binance, Ankr started trading in July 2020. At the time, the price remained in a tight range considering that it was a new token. It remained between $0.001 and $0.01 until early 2021.
The ANKR token price was not left behind during the cryptocurrency rally that happened in the first half of 2021. At the time, the price surged to an all-time high of $0.2200. Precisely, this was about 1,600% increase from the lowest level in 2020, making it one of the top performers.
Between May and June last year, the Ankr price declined by more than 78% during the well-known cryptocurrency winter. At the time, most cryptocurrencies, including Bitcoin and Ethereum declined sharply.
Again, the coin was not left in the cryptocurrency rally that started in June. The coin’s price approached its all-time high in November and has since then declined by more than 66% from its all-time high as shown below.
ANKR historic chart
Why has ANKR price collapsed?
There are several reasons why the ANKR price has declined. First, the decline is part of the overall weakness in the cryptocurrency industry. As you probably know, most cryptocurrencies like Bitcoin and Ethereum have declined by over 50% from their all-time high. Cryptocurrencies have declined by over $1.5 trillion from their all-time high.
Second, ANKR has declined because of the criticism towards Web 3. Jack Dorsey, the former CEO of Twitter and the current head of Square has been the most notable critic of the industry. He wrote the following about the industry.
Finally, there are concerns about the Federal Reserve and the fact that officials could implement several rate hikes this year. In a statement, Fed’s Raphael Bosticwarned that the Fed could increase rates in batches of 50 basis points. Some analysts also expect that the bank will hike rates about 7 times this year.
ANKR vs Ethereum
A common question is on the difference between Ankr and Ethereum. For starters, Ethereum is a blockchain infrastructure project that enables developers to build decentralized apps. Ethereum is a leading player in the Web 3 industry but it is known for its high costs and slow speed.
ANKR, on the other hand, is an Ethereum token that powers the Ankr Protocol. The protocol is a platform that makes it east to build dapps, hosting nodes, and staking. The chart below compares the performance of ANKR and Ethereum prices.
ANKR vs Ethereum prices
ANKR price prediction for 2022
The daily chart shows that the ANKR price has been in a strong bearish trend in the past few months. Along the way, the coin has formed a head and shoulders pattern and moved below the 25-day and 50-day moving averages.
Like other coins, it has also formed a death cross pattern, which is usually a bearish signal. Therefore, there is a likelihood that the sell-off will continue in 2022 as bears target the key support at $0.025. It will then end the year above the current level as investors buy the dips.
ANKR price prediction for 2025 and 2030
Like all financial assets, it is a bit difficult to predict where the price of ANKR will be at in 2025 and 2030. Besides, cryptocurrencies are known for their volatility. However, we can predict that the growing adoption by investors will push the prices higher in the long term.
Is ANKR a good investment?
Early investors have had a small gain because the price of ANKR has declined sharply from its all-time high. But historical performance is not an indicator of what to come. Still, we recommend caution when investing in small coins like ANKR.
Is ANKR a stock?
No. ANKR is not a stock. It is a token for the Ankr protocol. The only similarity between ANKR and stocks is that you can buy them and make money as the price rises.