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Terra USTC up over 170%! What is driving this rally?

Terra USTC up over 170%! What is driving this rally?

In the last 30 days, the token's value increased by a staggering 173.505% from $0.006343 at its lowest in the past month to $0.08942 at its peak.

Terra USTC up over 170%! What is driving this rally? Terra USTC up over 170%! What is driving this rally?

Despite the overall crypto market downturn in recent months, the Terra (LUNA) ecosystem's controversial algorithmic stablecoin TerraClassicUSD (USTC) has seen sharp increase in the last month.

In the last 30 days, the token's value increased by a staggering 173.505 per cent, from $0.006343 at its lowest in the past month to $0.08942 at its peak. The cryptocurrency is trading at $0.05681 on Tuesday as per data from CoinMarketCap.

The sudden peak in the value of the cryptocurrency is interesting because the rally occurred after USTC lost its dollar peg to the US Dollar in May and fell below $0.1 in concert with the decline of the Terra ecosystem as a whole.

What is driving the prices of USTC up?

Any definite drivers for USTC’s prices are unknown, especially after all prospect of a recovery was crushed with the Terra biosphere's collapse. Analysts are bewildered because of this sudden rally since Do Kwon’s involvement in fraud linked to the crash reduced the likelihood of a comeback.

Furthermore, developers no longer use the original Terra network to operate decentralised apps (dApps) and other protocols, hence USTC is for all means and purposes considered as a dead coin.

Many speculations are being made that this pump might be connected to the behaviour of many crypto whales who are actively investing in crypto as per on-chain data. These whales use their cash to drive up the price in order to benefit in the short term.

Also, given that the token’s current market price is far lower than its initial intrinsic value, individual investors may be contributing to the upswing as well.

Moreover, as a result of the price increase, investors have a fear of missing out (FOMO), believing that the token would eventually regain its value and are hence investing in the cryptocurrency.

Also Read: All you need to know about TDS on cryptos in 5 points     - BusinessToday

Also Read: What is the OneCoin scam promoted by Cryptoqueen Ruja Ignatova? - BusinessToday

 

Published on: Jul 06, 2022, 12:37 PM IST
Posted by: aakanksha chaturvedi, Jul 06, 2022, 12:30 PM IST