The trading volume for TerraClassic USD, or USTC — the defunct stablecoin of the old Terra Chain — suddenly rose more than 1,300%, per CoinMarketCap data. The price of USTC also surged nearly 37%, leading many traders to speculate.
At the time of publication, USTC was changing hands at $0.04, up 37.26% in the last 24 hours. Increased volatility generally leads to higher trading volumes in any market as traders buy and sell large quantities to make profits.
USTC pumping hard after the #LUNC repeg proposal. My USTC #LUNC swap on my staking rewards today was pretty sweet! pic.twitter.com/lafdKFs2CR
— Crypto Enthusiast (@LUNC_S6) October 10, 2022
While the reason for the sudden interest remains unknown, it might have been partly spurred by new proposals to repeg LUNC and USTC.
As reported by U.Today, members of the Terra Classic community are proposing an idea to restructure Terra Classic’s USTC through the creation of an algorithmic fungible token, USTN. However, the idea met setbacks, having proposed the minting of new LUNC tokens.
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This is a view for the re-peging of USTC that I fully support. On this proposal the #LUNCcommunity does not have to suffer again. We don’t need anymore minting. The mechanism of this proposal has a goal of re-peging USTC without minting any #LUNC………………………. https://t.co/i1ehAAWFlY— Vegas (@VegasMorph) October 9, 2022
Another repeg idea resurfaced, proposing a mechanism without the need for minting LUNC while considering the targeted 10 billion maximum supply for LUNC.
In May, the Terra ecosystem collapsed following the original UST depeg. Subsequently, a new Terra chain was born with the name Terra (LUNA), and the old chain was rebranded as Terra Classic with tokens LUNC and USTC.
Binance burns 3 billion LUNC
The price of LUNC was also up 3.13% at $0.0003 at the time of publication as Binance published the results of its burn. Binance burned nearly three billion, or 2,992,563,505 LUNC, according to its Monday burn plan.
In the past week, Binance burned over 5.6 billion LUNC worth $1.8 million. However, the price of LUNC fell. LUNC is showing surprising behavior this time as it rose 3%.
Source: https://u.today/terra-ustc-surges-37-in-hours-as-trading-volume-spikes-1319-whats-happening