- TerraClassicUSD (USTC) is on the rampage with a 300 percent weekly surge.
- The key trigger stems from a Bitcoin-focused stability plan teased by Mint Cash.
The crypto market has witnessed a 300 percent weekly surge in the price of TerraClassicUSD (USTC) following a Bitcoin-focused revival. Simultaneously, Terra Luna Classic (LUNC), a sister token to the USTC stablecoin is also up about 60 percent this week.
USTC is now trading at $0.05583, with a market value of $501,045,594, and a 24-hour trading volume of $617,491,424. LUNC, on the other hand, is currently trading at $0.00012 atop a market capitalization of $695.51 million and a 24-hour trading volume of $241 million.
A Bullish Momentum for USTC and LUNC
According to reports, the bullish momentum began when Binance, the world’s largest crypto exchange, introduced perpetual contracts for USTC with leverage of up to 50x. This move injected renewed interest and optimism into the Terra tokens, with trading volumes surging to unprecedented levels. The listing allowed traders to capitalize on the volatility of USTC, contributing to the remarkable price surge.
Adding fuel to the rally was the anticipation surrounding a USTC revamp plan that hinted at using Bitcoin as a foundational element. Mint Cash, a Bitcoin-focused payment project, outlined a vision for a successor to Terra’s failed stablecoin. The proposed plan involves collateralizing USTC with Bitcoin to mint tokens, offering a potential solution to the stability issues that plagued the original Terra ecosystem.
Moreover, the developers announced an airdrop plan for USTC and LUNC holders, fostering a speculative frenzy around these tokens. The promise of additional tokens through the airdrop likely intensified the buying interest, further driving up the prices of USTC and LUNC.
Notably, USTC and LUNC are the surviving sibling tokens that originally supported the defunct Terra ecosystem. Terraform Labs’ ecosystem, led by co-founder Do Kwon, underwent a spectacular collapse in May 2022, resulting in hyperinflation and a multibillion-dollar loss. Terraform Labs and Kwon were charged by the SEC with organizing a crypto asset securities scam with the algorithmic stablecoin.
The Rebirth of Terra Ecosystem
Following the collapse, developers introduced a new version of the Terra blockchain with a native token called LUNA. The original blockchain was renamed Terra Classic and TerraClassicUSD respectively, and the tokens became LUNC and USTC.
Despite the challenges, some developers remained committed to reviving the Terra Classic ecosystem, and community initiatives such as token-burning schemes were implemented to stabilize USTC’s hyperinflated supply.
In recent developments, Terraform Labs injected $15 million into the Terra ecosystem to address the cold start problem and enhance liquidity for blue-chip assets such as Bitcoin (BTC) and Ethereum (ETH). The capital was deployed into Astroport and Ura, Terra community’s Decentralized Exchanges (DEX), spanning 11 pools on both platforms.
Terraform Labs has already initiated collaborations with project teams to leverage the deployed capital, anticipating an increase in transaction volume and greater yield for LUNA stakers.
