thecryptobasic.com
TerraClassicUSD (USTC), the algorithmic stablecoin of the Terra ecosystem, has soared 301% amid a confluence of bullish fundamentals.
With the massive growth rate, USTC’s price now sits at $0.06579 jumping to this level from a low of $0.0167 in the past 24 hours. Following this surge, USTC market capitalization also rose by 301% to $571,801,371.
The most bullish on-chain metric is the trading volume which has soared by 2219.51% to $1,220,347,572. Despite its rank as the 76th largest cryptocurrency by market cap, the trading volume is the 7th biggest in the industry, surpassing top coins like Cardano (ADA), Shiba Inu (SHIB), and Litecoin (LTC).
USTC Price Growth Catalysts
Two major factors stand out as the triggers for the massive surge in the TerraClassicUSD price. The first is the strategic $500,000 investment from Terra Classic Labs deployed to buy 25.6 million UTSC at an average price of $0.021.
According to the announcement from Trader QT, an Official Terra Classic Labs partner, the accumulation is in line with the outfit’s Treasury Reserve Policy.
While USTC was initially designed as a stablecoin built to maintain a 1:1 peg to the US Dollar, its de-pegging in 2020 changed its status from a stablecoin to an asset with the potential to bring valuable returns. As such, the Terra Classic Labs investment is now worth $1,637,632, a more than 3x growth.
Besides this cash injection, Binance Futures also unveiled its plans to list USTC, a rare push toward the embrace of the stablecoin. The USDⓈ-M USTC Perpetual Contract, billed to go live for trading today, November 27 by 12:30 UTC will give traders access to about 50x leverage.
The Binance listing ultimately positions TerraClassicUSD as an asset with more potential than it was originally designed for.
Will USTC Soar to $1?
Analysts believe the performance of USTC in the past 24 hours is a testament of its potential to regain most of its lost momentum. Since its de-peg last year and the accompanying collapse of the Terra ecosystem, effort has gone toward helping both LUNC and USTC reclaim their lost glory.
One of these moves is the proposal to safely enable the market module. The protocol deactivated this module back in May 2022 and its potential reactivation will come with new amendments that will ensure safety.
The various efforts to reposition USTC and LUNC to $1 have gained traction and while the $1 mark seems elusive in the near term, current events and the soaring transaction counts show optimism is returning to the ecosystem and a surprise might be lurking around the corner.