Ankr (CCC:ANKR-USD) has recently emerged as one of the most promising altcoins in the market. Over the past 52 weeks, ANKR is up more than 5,000%. Put another way, $1,000 invested in the altcoin in June 2020 would now be worth about $56,000. Its price is currently hovering near $0.113.
Despite the recent sell-off in cryptos, ANKR has gained over 1,000% since the start of the year. By comparison, Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD) have returned about 30% and 280% since January, respectively.
Created in 2017, Ankr’s network is a blockchain platform powered by its Ethereum token, ANKR. The company claims to offer the benefits of decentralization to cloud computing. It wants to address problems with crypto, like capacity issues in distributed cloud networks and the incentive dilemma with network node usage.
Analysts believe Ankr’s competitive advantage in Decentralized Finance (DeFi) and cloud transactions could make it an important crypto project. And with a market capitalization (cap) of $778 million, ANKR could grow a lot more. If you plan to buy the altcoin, be ready to stay invested for the long-term.
Why Is Ankr Under the Spotlight?
The Ankr platform aims to “improve user experience, streamline processes and reduce costs for everyone to participate in Web3 technologies.” It also wants to “democratize” the Internet by eliminating intermediaries and gatekeepers, allowing users and developers to retain control over their applications and data.
According to Ethereum, Web2 describes the internet in its current state: “dominated by companies that provide services in exchange for your personal data.” In contrast, Web3 is internet that consists of the blockchain and the decentralized apps that run on it. With Web3, apps on the blockchain would allow users to participate without having to exchange their personal data.
In other words, the Web is evolving and decentralizing. In Web3, applications run on blockchains, which are immutable ledgers for recording transactions. Web3 discussions usually involve cryptocurrencies, too.
The Ankr blockchain platform uses ANKR tokens to power its Web3 and cross-chain DeFi staking platform. According to Coinbase Global, “Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain.”
Ankr’s distributed computing network lets users lend their computer’s capacity to secure the platform and power digital projects in exchange for ANKR tokens. The platform supports more than 40 blockchain protocols and uses a “Proof of Useful Work” (PoUW) algorithm.
The network’s approach to cloud services is estimated to offer significant cost savings for users. This value proposition is extremely attractive for businesses that deal with higher rates from other cloud service providers. ANKR already has partnerships with prominent blockchains like Binance (CCC:BNB-USD), Polkadot (CCC:DOT-USD), and Harmony (CCC:ONE-USD).
ANKR’s current market cap puts it among the top 100 cryptos. The coin has reached its supply cap, as the entire supply of 10 billion ANKR tokens are all currently in circulation. The price skyrocketed in 2021 as more people began using the network for its versatility and convenience.
ANKR Is a Long-Term Investment No Matter When You Buy
Thanks to its robust technology, market momentum and advantages in utility, Ankr is not an ordinary speculative altcoin. If ANKR continues to build strategic partnerships and increase user adoption, the digital currency can become one of the top-traded cryptocurrencies in the coming months.
Most analysts believe it will continue to rise, so Ankr remains one of the top altcoins to invest in during the crypto sell-off. However, buying the dip ahead of a market-wide recovery may leave investors exposed to choppiness and even further downside risk. In the short-term, ANKR’s price still may be at the mercy of the broader cryptocurrency market.
As the current sell-off may continue through June, I recommend investors take a cautious approach. Ankr is still up substantially from its January prices despite plunging in May. Its solid fundamentals suggest that the altcoin has significant long-term potential.
It’d make sense to be patient and wait out the crypto sell-off before investing in ANKR. Investors can then hold it for the long term without worrying too much about weekly price swings.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.