After a brief collective bullish run, the majority of the cryptocurrency market is back in the red, but the collapsed ‘stablecoin’ TerraClassicUSD (USTC) continues to advance, positioning itself as the top gainer over the past 24 hours.
Indeed, TerraClassicUSD is currently trading at $0.04349, recording an increase of 15.07% on the day, as well as 19.75% across the previous week, according to the data retrieved by Finbold on October 28.
Over the previous 24 hours, the decentralized finance (DeFi) token has reclaimed $400 million market capitalization, receiving an inflow of $45.91 million. In other words, USTC’s market cap grew from $370.76 million to $416.67 million or 12.38% in one day.
USTC technical analysis
Meanwhile, USTC’s technical analysis (TA) indicators are looking optimistic, as the summary is suggesting a ‘buy’ sentiment at 13. Breaking down the technicals further, the oscillators are also in a ‘buy’ sentiment with 3, and the same is shown in terms of moving averages (MA) with ‘buy’ at 10.
Re-pegging plan spurs price spike
It is also worth noting that three weeks earlier, the community around the proof-of-stake (PoS) blockchain Terra Classic community welcomed the re-peg proposal for USTC, which was immediately followed by the token’s rally to a monthly high, spiking more than 35% in 24 hours.
As a reminder, Tobias Andersen, a blockchain engineer and senior developer at Bitcoin Suisse AG, had submitted a proposal detailing a solution to the issue of massive amounts of uncollateralized USTC and the hyperinflated supply of the LUNC token.
Notably, along with the general Terra ecosystem crash, USTC lost its peg to the U.S. dollar in May 2022, after it fell below $0.1 and was considered a dead token, and its troubles continued with the allegations and subsequent prosecution of founder Do Kwon over his role in the crash.
However, taking into account the recent successes of TerraClassicUSD, combined with the newly introduced LUNC tax burn system, there could yet be another twist on the cards for the platform.
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