TerraUSD Classic, or USTC, the Terra Classic algorithmic stablecoin (LUNC) ecosystem, has recently skyrocketed in value and popularity.
Today, the stablecoin is making a sudden rally, which has sparked a lot of interest among investors and cryptocurrency enthusiasts.
The sharp growth of the USTC could be an indication of a sharp rise in demand and confirms the market’s growing confidence in this stablecoin.
Data appears from Coingecko crypto market tracker USTC is trading at $0.0186, as it recorded a 24-hour increase of 21.4%. In the past seven days, the stablecoin has recorded a staggering 58% rally, which has swelled its trading volume to 409%.
Source: Coingecko
USTC organic growth is pushing the stablecoin higher
Despite the fact that the reasons for this rise are not yet known, the recent rise in the value of the USTC is showing organic growth.
“Organic growth” refers to the increase in USTC value that occurs naturally, without the influence of external factors or artificial means.
It suggests that growth is the result of a company’s internal operations, strategies, and market dynamics, rather than being driven by external factors such as acquisitions, mergers, or financial manipulation.
After being unlinked over a year ago, the USTC has seen a significant price drop. Since USTC is a stablecoin with a 1:1 peg to the US dollar, its price should always be $1.
The stablecoin has since traded lower, reaching a 52-week high of $0.06 during that time. However, there are signs that the USTC could revisit the $1 level and regain its value.
Total market cap of cryptocurrencies as of today stood at $1.17 trillion. Chart: TradingView.com
The classic TerraUSD decoupling created significant hardships for the larger digital currency ecosystem, and its effects are still being felt today.
A few of the Web3.0 companies that were doing business with its parent company Terraform Labs have stopped as well as the price of its associated cryptocurrency, Terra Classic, has plummeted by more than 99%.
The implosion of FTX derivatives exchange was finally spurred by the bankruptcies of Celsius Network and Voyager Digital, prolonging the crypto winter even further.
Meanwhile, in order to expand supply and revive interest in the stablecoin, the Terra Classic community is launching projects such as staking and burning LUNC tokens while also working to improve the infrastructure.
Source: Coingecko
Will Terra Classic Stablecoin Test Return $1?
There is a growing consensus that the TerraUSD Classic token is steadily approaching a retest of the important $1 price level. Among investors and enthusiasts alike, this strong bullish trend has led to new optimism.
As the TerraUSD Classic token gains momentum, it reinforces community members’ belief in its ability to maintain its associated value and act as a reliable digital asset.
The community may become excited and anxious awaiting a possible retest of the $1 price level, which will improve the outlook for TerraUSD Classic’s long-term prospects.
(The content of this website should not be interpreted as investment advice. Investing involves risk. When you invest, your capital is at risk).
Featured image from Analytics Insight