The value and popularity of TerraUSD Classic (USTC), the algorithmic stablecoin of the Terra Classic (LUNC) ecosystem, have witnessed a remarkable surge recently.
This surprising rally has piqued the interest of investors and cryptocurrency enthusiasts alike, leading to a surge in trading volume and rising confidence in this stablecoin.
USTC’s value has experienced a sudden surge, indicating a significant rise in demand and demonstrating the market’s growing confidence in the stablecoin.
Coingecko data shows USTC trading at $0.0186, with a 24-hour increase of 21.4%. Over the last seven days, USTC has witnessed an impressive 58% rally, fueling its trading volume to an impressive 409%.
The recent upswing in USTC’s value is attributed to organic growth, indicating that it is not influenced by external factors or artificial means. Instead, it is a result of the company’s internal operations, strategies, and market dynamics.
After being de-pegged over a year ago, USTC experienced a significant price decline. As a stablecoin with a 1:1 tie to the USD, its price should always be $1.
However, it traded at lower prices, reaching a 52-week high of $0.06. Nevertheless, there are indications that USTC may revisit the $1 level and regain its value.
The de-pegging of TerraUSD Classic had significant consequences for the wider digital currency ecosystem, with some Web3.0 firms tied to Terraform Labs going out of business, and Terra Classic witnessing a more than 99% price decline. The fallout also affected other entities like FTX Derivatives Exchange, Celsius Network, and Voyager Digital.
To expand supply and reignite interest in the stablecoin, the Terra Classic community is actively launching projects such as staking and burning LUNC tokens, while simultaneously improving the overall infrastructure.