USTC and LUNC Surge: A Ray of Hope for Terra Ecosystem’s Recovery

USTC and LUNC Surge: A Ray of Hope for Terra Ecosystem’s Recovery

In the past few days, TerraUSD Classic (USTC) has seen an astonishing surge, reaching $0.01624. Within the last 24 hours alone, USTC has surged by an impressive 25.48 percent. Analysts note that this growth appears to be organic, driven by intriguing trading activity, with the stablecoin boasting a 24-hour trading volume of $92.4 million.

This recent growth represents a substantial increase of approximately 702 percent, marking one of the most significant movements for USTC since it de-pegged from the USD over a year ago. Despite its aim to maintain a 1:1 peg to the dollar as a stablecoin, USTC had been trading much lower, with a 52-week high of $0.06. The Terra ecosystem’s infamous crash had led the entire crypto market to plummet, causing many leading assets to trade at least 60 percent below their all-time highs. Further challenges were faced with the bankruptcy of Celsius Network and Voyager Digital, extending the crypto winter.

The recent recovery of USTC has sparked hope within a section of the crypto community, speculating that the asset might retest the $1 price point. Additionally, the Quant team, supported by the Joint L1 Task Force (L1TF) developer and the community, is determined to work towards restoring USTC’s value to $1.

Quant team member, RedlineDrifter, has announced Proposal 11597 “USTC / Stable Algo Quant Team,” which is currently up for voting.

Meanwhile, Terra Classic (LUNC), the original chain of the collapsed ecosystem, is also showing bullish signs, trading at $0.000092. Over the last seven days, LUNC has experienced a 13 percent increase. With a safety score of 45/100, LUNC’s 24-hour trading volume stands at $81,429,340, while its market cap amounts to $537,747,158. In the past 24 hours, the asset has surged by 3.6 percent.

A key factor contributing to this surge is the introduction of the LUNC/USTC pair. Certain members of the LUNC community hold a strong belief that the asset could reach $0.0001445 by the end of July, projecting a 54 percent increase from its current price. Some even speculate that the bullish trend might extend into August, with a target price of $0.0001355 by August 31, reflecting a 44 percent surge from its current value.

In a concerted effort to revive the Terra ecosystem, the team has initiated a significant token burn. ClassyCrypto, a community member and validator of Classy’s Sphere, is leading the charge to drive the price back to $1. To this end, there are discussions of reintroducing validator burns as part of plans to burn billions of tokens, thereby boosting the asset’s price. Notably, for the remainder of the year, 100 percent of the commission earned by their validator will be burned.

Binance, a prominent crypto exchange, has also shown support by conducting token burns for the spot and margin trading fees related to LUNC on a monthly basis.