The Terra (LUNA) ecosystem’s infamous algorithmic stablecoin TerraClassicUSD (USTC) has recorded a spike in value despite the widespread crypto market correction in recent months.
Over the last 30 days, the token gained by a whopping 266% trading at $0. 066 on July 4 from $0.018 recorded on June 4. During the period, the token recorded a high of $0.089 on June 29, according to CoinMarketCap data.
Notably, the rally has emerged after USTC lost its peg to the dollar in May and fell below $0.1 in line with the general Terra ecosystem crash.
Possible USTC drivers
The driver for USTC’s rally cannot be pointed out, especially after all hopes for resurgence were lost following the Terra ecosystem collapse. The possibility for a revival was further dented after founder Do Kwon got entangled in more allegations of fraud regarding the crash.
Currently, USTC is considered a dead token since the original Terra blockchain is no longer utilised by developers to power decentralised apps (dApps) and other protocols.
Consequently, the pump can be attributed to the action of several crypto whales who are attracted to the token despite the low liquidity. Notably, such whales use their funds to pump the price with the goal of making short-term gains.
Another possible driver for the rally could be the input of retail investors who are buying in the dip considering that the coin has become considerably cheap compared to its initially intrinsic value.
At the same time, the investors are hoping the token will eventually regain its peg in the long term, coupled with the fear of missing out (FOMO) amid the spike in value.
Other Terra tokens gaining traction
Interestingly, other tokens on the original Terra ecosystem have also recorded significant rallies in recent days. Finbold reported that the Terra Classic (LUNC) token recorded an inflow of $534 million between June 29 and June 29.
Furthermore, the tokens continue to receive support from the community and cryptocurrency exchanges that have not delisted them after the collapse keeping the assets as one of the most tokens on CoinMarketCap.
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