ANKR crypto (CCC:ANKR-USD), which is listed on Coinbase (NASDAQ:COIN) on March 25, wants to be a new kind of crypto blockchain. It is an Ethereum (CCC:ETH-USD)-based token that powers Ankr, a Web 3.0 infrastructure and multi-chain staking DeFi platform.
Defi stands for decentralized finance. DeFi is powering a good many Ethereum applications these days. The best way to understand it is as a platform to launch banking, brokerage, lending, and staking apps.
However, there are not companies or banks, brokerages, or lending companies involved. Smart contracts powered by Ethereum — or in this case ANKR-based blockchain code — take the place of the banks, brokerages, lending companies.
What ANKR Is All About
ANKR crypto offers a multi-chain blockchain platform to allow DeFi apps to flourish. According to Decrypt.co online magazine, it was started by a group of Chinese graduates of UC Berkley and funded by a number of VC funds, including Coinbase’s VC unit. Moreover, ANKR has started its own DeFi platform called Bounce, to allow developers to start their own DeFi apps.
According to Coinbase, ANKR “aims to make it easy and affordable for anyone to participate in blockchain ecosystems by building dapps, hosting nodes or staking.” Moreover, there is a purpose for the ANKR crypto token. It is can be used to pay for services on the Ankr platform.
Examples include node deployment and API services. Owning the ANKR crypto token also allows the owner to participate in on-chain governance and it can also act as “insurance for network participants.”
Where This Leaves ANKR Crypto
Coinbase thought this is a new and different kind of blockchain and decided to list it in late March. According to Yahoo! Finance, the token now has a market value of around $500 million based on its price on June 24 of 7.5947 cents.
This puts it just below the 100th ranked crypto on Coinmarketcap.com which has a market value of $503 million (UMA).
Since listing on Coinbase at the end of March when it was at 16.8392 cents, the ANKR token has dropped 9.2445 cents or 55%. Most of that drop occurred in May, but the crypto began this month at 10.723 cents. This means that its performance in June so far is down 3.1283 cents or negative 29%.
I wouldn’t worry about this performance so far. This is a smaller crypto in terms of market capitalization. It has been highly volatile along with the general decline of digital assets this spring.
Once ANKR gains more acceptance in the DeFi platform arena, as a tool that simplifies the development of DeFi apps, the ANKR crypto will begin a healthy move higher.
Therefore, if you are willing to take a flyer on a more risky cryptocurrency, and can accept the investible volatility, a position in ANKR might work out. Just don’t expect it to get rich quick on this one.
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On the date of publication, Mark R. Hake held a long position in Ethereum (ETH-USD). The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.