Terra USTC is Up More Than 170%! What is the Rally’s Driving Force?

Written by C, Fiona

Last updated: 2022-07-07

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The token’s value jumped from $0.006343 to $0.08942 in the past month, an incredible 173.505 percent rise.

The Terra (LUNA) ecosystem’s controversial algorithmic stablecoin TerraClassicUSD (USTC) has enjoyed a strong gain in the last month, despite the overall crypto market decline in recent months.

The token’s value jumped from $0.006343 to $0.08942 in the past month, an incredible 173.505 percent rise. According to data from CoinMarketCap, the coin is currently trading at $0.05681.

When USTC lost its dollar peg to the US Dollar in May and plummeted below $0.1 in tandem with the decline of the Terra ecosystem, the rapid rise in the cryptocurrency’s value is intriguing.

How Does USTC’s Value Increase?

The collapse of the Terra biosphere snuffed out any hope of a USTC price recovery, hence there are no clear forces behind the current price of USTC. Since Do Kwon’s involvement in fraud linked to the crash reduced the chances of a recovery, analysts are bewildered by this rapid rally.

USTC is now regarded a dead coin because developers no longer use the original Terra network to run decentralized apps (dApps) and other protocols, making it obsolete.

This pump’s origins have been linked to the on-chain activity of a large number of active crypto whale investors, according to numerous theories. The short-term gain of these whales is achieved by driving up the price.

This may be due to the fact that the token’s current market price is significantly lower than its initial intrinsic worth.

In addition, investors have a fear of missing out (FOMO), believing that the token will eventually recoup its value, and are so investing in the cryptocurrency as a result.