The value and popularity of TerraUSD Classic, or USTC, the algorithmic stablecoin of the Terra Classic (LUNC) ecosystem, have skyrocketed recently.
Today, the stablecoin makes a surprise rally, sparking a great deal of interest among investors and cryptocurrency aficionados.
The sharp growth in USTC could be an indication of a sharp rise in demand and emphasizes the market’s rising confidence in this stablecoin.
Data from crypto market tracker Coingecko shows USTC trading at $0.0186, notching a 24-hour increase in value of 21.4%. In the last seven days, the stablecoin registered an impressive 58% rally, causing its trading volume to balloon to a solid 409%.
Source: Coingecko
USTC Organic Growth Pushes Stablecoin Up
Despite the fact that the causes of this upswing are yet unknown, the recent spike in USTC’s value shows organic growth.
“Organic growth” refers to the increase in value of USTC that occurs naturally, without the influence of external factors or artificial means.
It suggests that the growth is the result of the company’s internal operations, strategies, and market dynamics, rather than being driven by external factors such as acquisitions, mergers, or financial manipulations.
After it was de-pegged more than a year ago, USTC saw a huge price decline. Since USTC is a stablecoin with a 1:1 tie to the USD, its price should always be $1.
The stablecoin has since traded at lower prices, reaching a 52-week high of $0.06 during that time. There are signs, nevertheless, that USTC could revisit the $1 level and recoup its worth.
Total market cap of cryptocurrencies as of today stood at $1.17 trillion. Chart: TradingView.com
The TerraUSD Classic de-pegging caused major difficulties for the larger digital currency ecosystem, and its effects are still being felt today.
A few Web3.0 firms with exposure to its parent company Terraform Labs went out of business in addition to the more than 99% decline in price of its linked cryptocurrency, Terra Classic.
The implosion of FTX Derivatives Exchange was finally driven by the bankruptcies of Celsius Network and Voyager Digital, which prolonged the crypto winter even further.
Meanwhile, in order to expand supply and rekindle interest in the stablecoin, the Terra Classic community is launching projects like staking and burning LUNC tokens while also working to improve infrastructure.
Source: Coingecko
Will The Terra Classic Stablecoin Retest $1?
There is growing consensus that the TerraUSD Classic token is steadily approaching a retesting of the significant $1 price level. Among investors and enthusiasts alike, this strong rising trend has spurred new optimism.
As the TerraUSD Classic token gains momentum, it boosts community members’ faith in its capability to uphold its pegged value and function as a dependable digital asset.
The community may become excited and eager in anticipation of a probable retest of the $1 price level, which would improve the outlook for TerraUSD Classic’s long-term prospects.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Analytics Insight