TerraClassic USD (USTC) has soared by nearly 40%. The coin is valued at $0.059 at the time of publishing, but still far from its $1 peg.
The fully diluted market cap of USTC is at $561 million, with a 24-hour trading volume of $355 million.
A possible reason behind the surge in price could be a proposal to repeg USTC.
TerraClassic USD (USTC) is experiencing a surge in price. The notorious “stablecoin” is seeing a price increase of close to 40%, with the cryptocurrency valued at $0.059 at the press time.
The fully diluted market cap of USTC has also jumped by nearly 40% to over $561 million. 24-hour trading volumes stand at approximately $335 million.
USTC is still far from its $1 peg, but that hasn’t stopped some in the Terra community from getting excited at the development. Several individuals on social media platforms have been talking about their staking rewards.
The coin took only 24 hours to reach that massive jump in price, which has occasionally happened for LUNC as well. It is yet another development in the long saga of the Terra ecosystem.
The depegging of UST sent shockwaves throughout the crypto market and brought into doubt the efficiency of algorithmic stablecoins. The market is still feeling the effects of the incident, which has cascaded into other parts of the market and affected several other companies.
There has been some discussion as to why the coin might be undergoing this activity. The Terra Classic (LUNC) community is considering repegging USTC, and this is receiving a good deal of support.
Repeg May Be Behind Price Rise
One Terra community member and blockchain engineer, Tobias Andersen, published a post on Medium proposing the repegging of USTC. Saying that the LUNA community members were a “vibrant, emotional and diverse flock of people as committed to their cause,” he described his intention to help heal the community.
The proposal also talks about attracting investment in order to bring USTC back to its $1 peg. For this, Andersen believes that there needs to be an “anti-fragile” market maker system that will attract businesses on board. Features that he deems necessary for this include capital controls.
In his lengthy post, the blockchain engineer talks about how the project could be healed. He proposed a means by which the stablecoin could be recapitalized using quantitative easing methods. Andersen describes several concepts, including tranches, remittance corridors, partitioned pools, and partial swaps.
It’s unclear whether this will actually work out and if the USTC surge is only temporary. The community is still hurting from what Andersen calls a black swan event, but it has also been pushing for improvements in the ecosystem. However, the community seems keen to take any action it can in order to bring the ecosystem back to its former popularity.