TerraUSD Classic (USTC), the algorithmic stablecoin of the Terra Classic (LUNC) ecosystem, has recently witnessed a remarkable surge in value and popularity.
The unexpected rally of USTC has sparked interest among investors and cryptocurrency enthusiasts, with the stablecoin showing significant growth and demand in the market.
Data from Coingecko reveals that USTC is currently trading at $0.0186, showcasing a remarkable 24-hour increase in value of 21.4%.
Over the past seven days, USTC has experienced an impressive 58% rally, leading to a substantial surge in its trading volume, which now stands at 409%.
While the exact reasons for this sudden upswing remain unknown, the growth in USTC’s value appears to be organic in nature.
Organic growth indicates that the increase in USTC’s value is driven by the company’s internal operations, strategies, and market dynamics rather than external influences such as acquisitions or financial manipulations.
USTC faced a significant price decline after being de-pegged from its 1:1 tie to the USD over a year ago. While its price should ideally be $1, the stablecoin traded at lower values, reaching a 52-week high of $0.06.
However, recent developments indicate that USTC might be on track to revisit the $1 level and regain its value.
The de-pegging of TerraUSD Classic had far-reaching effects on the broader digital currency ecosystem. Some Web3.0 firms with exposure to Terraform Labs, the parent company, faced financial difficulties.
Additionally, the linked cryptocurrency, Terra Classic, witnessed a drastic price decline of more than 99%.
Despite the challenges, the Terra Classic community is actively working on reviving interest in USTC. Initiatives such as staking and burning LUNC tokens and enhancing the infrastructure aim to expand the stablecoin’s supply and attractiveness.