DeFi Protocol Ankr Retreats after Early Hours Surge Following Microsoft and Tencent Partnerships
The liquid staking token Ankr failed to sustain its rally to exchange hands 2% lower than Tuesday’s price levels. The decline corrected early hours upsurge that arose from news of partnering with global tech giants Microsoft Corp. and Tencent Cloud.
Microsoft and Tencent Partnerships Propel Ankr Rally
The initial announcement confirming the partnership with Microsoft Corp portrayed longevity in the Ankr project. The two firms are set to leverage their expertise to offer Web3 and blockchain infrastructure solutions. The announcement sent Ankr prices to rally from 3 cents to 6 cents.
The subsequent announcement of Ankr’s memorandum of understanding with China-based Tencent Cloud sent the token price to the roof. The agreement would see the two companies collaborate in building a suite featuring blockchain-based API services.
Market Outlook of ANKR
The announcement of the two partnerships has pushed the daily trade volume to 18.72% topping $941.82 million as captured on the Coinmarketcap data. Its total market capitalization dipped by 3% to $475M. A scrutiny of the ANKR performance captured by DeFiLlama data shows the total value locked is $159.92M.
At press time 18:50 UTC, ANKR is exchanging hands at $0.0492 3% down in the day after testing a low of $0.004433 and a high of $0.05321. The daily trade volume shows the liquid staking token relies on centralized exchanges that executed $941,894,489, while decentralized exchanges handled $2,453,785.
Liquid Staking Tokens Popularity
ANKR surge coincides with the popularity of liquid staking tokens as the preferred bullish asset class following the regulatory action against centralized exchanges that offer(SEC) imposed a $30 million fine. Also, SEC shut the staking products terming them violating the securities law as they are unregistered.
ANKR benefits from the current approach where the regulatory agency has yet to crackdown on Liquid staking derivatives. Their exclusion from the ongoing onslaught that has downed Paxos issued Binance USD (BUSD) stablecoin has benefitted from a shift in the investment.
The continued exclusion of liquid staking derivatives from the current purge would leave the ANKR experiencing increasing trading activity as investors prioritize securing yields on their existing crypto holdings.
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