- Mirror Protocol (MIR) price has jumped by over 20% recently.
- Mirror was ditched by Band Protocol, its live feed data provider.
- Anchor Protocol has also jumped as the Terra ecosystem bounces back
Mirror and Anchor Protocol prices bounced back on Thursday as the Terra Classic ecosystem bounces back. ANC jumped by more than 30% in the past 24 hours while MIR rose by over 20%, according to data compiled by Binance.
Terra LUNA Classic and USTC rebounds
Terra LUNA Classic is the remnant of what was a top-ten cryptocurrency in the world. The ecosystem, which was built on Cosmos Chain, derived its success on the performance of Terra USD. Terra USD was an algorithmic stablecoin that was supposed to remain at $1.
Anchor Protocol and Mirror Protocol were two of the top applications in Terra’s ecosystem. Anchor was an investment platform that provided users with returns of over 20%. At its peak, it had over $15 billion total value locked (TVL). ANC, the native token for Anchor Protocol, is now valued at about 37%.
Mirror Protocol, on the other hand, was a trading and investment platform that let people buy derivatives in industries like stocks, currencies, and commodities. At its peak, the platform had over $600 million in value locked in its ecosystem. MIR is the native token for the ecosystem.
ANC and MIR prices have bounced back in the past few days. It is unclear why these tokens are rising. A possible reason is that this performance is in line with the performance of Terra LUNA, Terra LUNA Classic, and Terra Classic USD.
LUNC has rallied by more than 112% from the lowest level in July while LUNA has jumped by more than 112% from its lowest point on May 31st. USTC, on the other hand, has jumped by more than 535% from the lowest point in May. Therefore, ANC and MIR prices are rising as investors predict that USTC will regain its peg.
Are Mirror Protocol and Anchor Protocol good buys?
In my view, Mirror and Anchor Protocols are not good long-term investments. For one, there are signs that development in the two protocols has ended. In August, Band Protocol, which provided Mirror with price feeds announced that it will end supporting the platform.
The developers cited lack of communication by Mirror’s team. Therefore, without a suitable oracle provider like Band, it is not possible for the ecosystem to exist. Mirror has also been accused of being a fraud in the past few months.
Similarly, there is no activity going on in Anchor Protocol since the developers have not moved to the new Terra 2.0. Therefore, from a fundamental perspective, it is a bit difficult to recommend MIR and ANC.
