TerraUSD Classic (USTC) Up 25%, What’s Happening?
TerraUSD Classic (USTC), the algorithmic stablecoin of the Terra Classic (LUNC) ecosystem is on a parabolic run today, showcasing a massive resurgence in interest for the stablecoin.
The TerraUSD Classic Run
According to data from CoinMarketCap, the TerraUSD Classic stablecoin is up by 25.48% over the past 24 hours to $0.01624. While it remains unclear what is driving the resurgence in the stablecoin at this time, it is worth noting that the growth appears organic, taking a look at its overnight buying momentum.
Per the data, more than $92.4 million worth of the stablecoin has been traded over the past 24 hours, a figure that has grown by 702%. The massive embrace of the stablecoin appears to have pushed its price to the highest level in more than a month.
As a stablecoin pegged to the United States Dollar on a 1:1 basis, USTC is supposed to be trading at a price of $1, however, since its historic de-pegging event more than a year ago, USTC has been trading considerably lower with a 52-week high of $0.06. The de-pegging of TerraUSD Classic resulted in a lot of pangs for the broader digital currency ecosystem as its ripple effect is still being felt to date.
Besides the more than 99.9% slump in the price of its associated cryptocurrency, Terra Classic, some Web3.0 startups that had exposure to its parent company Terraform Labs went bankrupt. The bouts of bankruptcy from Celsius Network, to Voyager Digital, finally fueled the implosion of FTX Derivatives Exchange which further elongated the crypto winter.
Hopes for 1:1 Repegging?
With the TerraUSD Classic token recording an immense price surge in recent times, many community members are optimistic that the stablecoin may actually be building the momentum to retest the $1 price level.
While this is a very ambitious projection, the LUNC community is actively revamping its ecosystem to drive the burning of LUNC and also push innovative programs such as staking that can help revive interest and boost the accumulation of the stablecoin.
With this latest price resurgence, USTC has now been placed on the radar of more traders and it is worth watching its trend in the near long term.
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