Terra Classic's Unyielding Spirit: USTC & LUNC's Price Surge Sparks New Hope

Dive into the dynamic world of Terra Classic, where USTC & LUNC's unexpected price recovery signals a potential comeback.

Explore expert insights and community-driven efforts shaping the future of these cryptocurrencies, in an industry where resilience often leads to revival.

The Significant Recovery of USTC & LUNC Prices

Despite losing over 99% of their value in the catastrophic price plunge of May 2022, Terra Classic (LUNC) and Terra Classic USD (USTC) have recently seen renewed hope with increasing anticipation for a "LUNC & USTC price recovery."

Developed as a dollar-pegged stablecoin, "USTC" had fallen below $0.01 in June last year.

However, around the 26th of this month, a recovery trend began, and on the 27th, it temporarily reached "1 USTC = $0.07."

"LUNC," which once soared to about $116 at its peak, had fallen to $0.00005 last month. Since then, it has gradually recovered, and on the 27th, it reached "1 LUNC = $0.00012."

Analyzing the Rise in USTC & LUNC Prices

Several opinions have emerged regarding the reasons behind the price increases of USTC & LUNC.

The cryptocurrency community suggests that multiple factors such as "Binance Futures relisting USTC, increased trading volume, and token burning" may be involved.

Binance announced at around 3 PM on the 27th that it would start offering USTC perpetual contracts in Binance Futures. Bybit also announced the initiation of USTC/USDT perpetual contracts on the same day.

These announcements were made when the USTC price had already started rising, making it unlikely that they triggered the price increase.

However, the community is excited about the potential for increased trading activity and further price recovery due to these new developments in USTC.

One reason cited is "token burn," a practice long implemented by the Terra Classic community, aimed at promoting price increases by voluntarily burning massive amounts of issued LUNC & USTC, especially after the price crash.

The LUNC burn, supported by BINANCE, has garnered attention, and currently, voluntary burns are being conducted for both LUNC and USTC.

The Terra Classic community continues to propose various improvements and discussions, such as revising the "Burn Tax" and efforts towards "repegging USTC."

Although significant fluctuations in burn quantities are possible, no substantial declines have been observed since the May crash last year, fueling hopes for potential price recovery due to these initiatives.

Analysts Express Optimism for the Revival of LUNC & USTC

Cryptocurrency analyst Oscar Ramos is among those expressing optimism for the recovery of LUNC & USTC. In a YouTube video released on November 27, 2023, he conveyed his positive outlook for the future of LUNC & USTC.

He remarked on the recent rise in USTC prices, stating, "This is the first significant price point since early 2023," and added, "No one can predict exactly what will happen next, but we need to understand that 'USTC is not dead.'"

In the cryptocurrency industry, several tokens have experienced major price crashes, including the FTX Token (FTT), which plummeted with the collapse of the cryptocurrency exchange FTX.

However, FTT has risen from $1 to around $5 on the 11th of this month, drawing attention to similar movements in other cryptocurrencies.