Terra’s stablecoin USTC post an impressive daily gains in the last few days. Meanwhile, it has not been alone in this price surge as Luna Classic (LUNC) has followed the same path. Their sudden price appreciation has left several investors wondering what the future holds for the stable coin that lead to lost of billions of dollars few months ago.
This is in a season where the broader crypto market is still counting its losses as major digital assets like Bitcoin and Ethereum are struggling to stop the price capitulation.
However the lost, some have still stuck with the first Terra blockchain and the pump in the coin is a testament to continued activities within the defunct crypto project.
Although Terra’s USTC is still trading below the $1 price peg, but the foremost stablecoin surged over 131% in the last 7 days . LUNC has also caught major tailwinds and is trading at $0.0001454, up 63.40% in the same window.
More astonishing is both assets’ weekly performance has surged significantly in the past week. Trading volume for the duo has also skyrocketed, with LUNC showing over $1 billion in 24-hour trades and USTC recording a $422.9 million investment so far last week.
In a year where the crypo market is so accustomed to bearish trend, lunc and ustc seems to be heading to another ATH.
Bitcoin, for instance, dropped from its November 2021 high of $69,000 to within $40,000. Given its position in the crypto market, this price slump led to a shedding of the total market cap of crypto to below the $2 trillion mark.
MORESO, Terra’s crisis happened. Terra was depegged from its algorithmic stablecoin UST. This crisis led to a sudden dip in the price of the Terra network token LUNA, despite heroic efforts to save the fiat-backed digital asset.
The historic drop from $100 of LUNA at its apex to less than a dollar forced founder, Do Kwon, to initiate a hard fork. This has led to renaming the stablecoin to USTC and LUNA to LUNC.
The performance of lunc and Luna for a period of five weeks can be seen in the graph below that a pump in ustc also leads to a corresponding pump in lunc
USTC.PNG
USDC VS LUNC.PNG
