The value and popularity of TerraUSD Classic (USTC), an algorithmic stablecoin in the Terra Classic (LUNC) ecosystem, has skyrocketed recently.
Stablecoins are currently experiencing an astonishing rise and are garnering a great deal of interest among investors and cryptocurrency enthusiasts.
USTC’s rapid growth may indicate a sharp increase in demand, highlighting growing market confidence in this stablecoin.
Data Shown by Crypto Market Tracker Coiningecko USTC trades at $0.0186, recorded a price increase of 21.4% in 24 hours. Over the past 7 days, the stablecoin has posted a staggering 58% rise in its trading volume, while its trading volume has ballooned to 409%.
Source: Coingecko
USTC Organic Growth Boosts Stablecoins
Despite the fact that the cause of this rise is still unknown, the recent spike in USTC values shows that organic growth.
“Organic growth” refers to an increase in the value of the USTC that occurs naturally, unaffected by external factors or man-made means.
This suggests that growth is the result of companies’ internal operations, strategies and market dynamics, rather than being driven by external factors such as acquisitions, mergers and financial manipulations.
Since the peg was lifted over a year ago, the USTC has seen significant price declines. USTC is a stablecoin with a 1:1 relationship with USD, so the price should always be $1.
The stablecoin then traded lower, during which time it reached a 52-week high of $0.06. Nonetheless, there are indications that the USTC may return to $1 levels and regain its value.
Total market cap of cryptocurrencies as of today stood at $1.17 trillion. Chart: TradingView.com
TerraUSD Classic’s de-pegging caused great difficulty for the larger digital currency ecosystem, and its impact is still being felt today.
Several Web 3.0 companies associated with parent company Terraform Labs have gone out of business, and the price of the linked cryptocurrency Terra Classic has fallen by more than 99%.
The collapse of the FTX derivatives exchange was ultimately triggered by the bankruptcies of Celsius Network and Voyager Digital, further extending the crypto winter.
Meanwhile, to expand supply and rekindle interest in stablecoins, the Terra Classic community is launching projects such as staking and burning LUNC tokens while also working to improve its infrastructure.
Source: Coingecko
Will the Terra Classic Stablecoin Retest $1?
Consensus is growing that TerraUSD Classic Token is steadily approaching a $1 significant price level retest. Among investors and enthusiasts alike, this strong upward trend has sparked renewed optimism.
As the TerraUSD Classic token gains momentum, community members’ confidence in its ability to maintain a fixed value and serve as a trusted digital asset will grow.
The community could be excited and enthusiastic in anticipation of a retest of the $1 price level that could improve TerraUSD Classic’s long-term prospects.
(The content of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is at risk.)
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