USTC Skyrockets 300%: Bitcoin's Revival and Binance Listing Fuels the Hype

• Rapid Gains for TerraClassicUSD (USTC) and Terra Luna Classic (LUNC)
• Factors Influencing USTC and LUNC Growth
• Binance and USTC
• Mint Cash's Stablecoin Proposal
• The Legacy of Terra
• Relaunch of Terra Blockchain

Rapid Gains for TerraClassicUSD (USTC) and Terra Luna Classic (LUNC)

The cryptocurrency TerraClassicUSD (USTC) has seen an impressive 300% increase in value over a one week period. This significant surge was incited by the unveiling of a bitcoin-backed revamp plan, and the commencement of a Binance perpetual contract listing. USTC, in conjunction with LUNC, forms the bedrock of the Terra ecosystem which experienced a dramatic downfall in the month of May last year.

Factors Influencing USTC and LUNC Growth

Both USTC and its companion token Terra Luna Classic (LUNC), remnants of the defunct Terra blockchain, have experienced a surge in their values this week. This is largely credited to a new perpetuals contract listing on Binance and a plan to revamp and airdrop focused on bitcoin. According to recent data, LUNC has seen an approximate 60% increase this week, with nearly a 20% rise in the last 24 hours. USTC, conversely, has almost seen a four-fold increase in its value. This rally has taken the price of USTC to $0.05, a far cry from its original price peg of $1.

Binance and USTC

The significant gains for USTC can be attributed to Binance, the world's largest cryptocurrency exchange in spite of regulatory hurdles. On Monday, Binance began offering perpetual contracts for USTC with a substantial leverage of up to 50x. The anticipation of a USTC revamp plan, that would use Bitcoin$42,260 -0.64% as its foundation, is also said to have fueled this rally. The recently revealed payment project from Mint Cash, which envisions a successor for Terra's failed stablecoin collateralized by BTC, aligns with this anticipation.

Mint Cash's Stablecoin Proposal

In addition to the proposed revamp, the development team also disclosed that they are planning an airdrop for USTC and LUNC token holders. These revelations have triggered a speculative fervor around the token, with a resultant surge in USTC trade volume over the past few days, at times exceeding $1 billion in 24-hour activity.

The Legacy of Terra

LUNC and USTC are remnants of the sister tokens that propped up the once vast, but now defunct Terra ecosystem, developed by Terraform Labs and spearheaded by co-founder Do Kwon. The tokens collapsed into a hyperinflationary spiral in May of last year, leading to the spectacular downfall of the entire multi-billion dollar Terra ecosystem. The U.S. Securities and Exchange Commission (SEC) subsequently charged Terraform Labs and Kwon with crypto asset securities fraud this February.

Relaunch of Terra Blockchain

Following the collapse, a new version of the Terra blockchain was launched, complete with a fresh native token dubbed LUNA. Consequently, the old blockchain was renamed Terra Classic, and the tokens were rebranded as LUNC and USTC. Despite the catastrophe, certain developers remained dedicated to reviving the ecosystem around Terra Classic, and implemented a community voted halt to the minting of new USTC tokens, in an attempt to counteract its hyperinflated supply through token burning strategies.

Edited by Jonathan Stoker