- Terra Classic USD (USTC) Token price has jumped by over 628% from its 2023 lows.
- This surge has triggered a major jump in LUNC, Anchor Protocol, and LUNA.
- Binance listed its perpetual futures while some developers are attempting to reinstate its peg.
Terra tokens are among the best performers this week after major developments in the ecosystem. Terra Classic USD (USTC) price surged to a high of $0.07797, which was over 628% above the lowest point in November. This surge gave the former stablecoin a market cap of over $502 million, making it the 100th biggest token in the world.
USTC’s surge also triggered gains across the Terra ecosystem. Terra Luna Classic price surged to a high of $0.00012, the highest point since April 14th. Like USTC, LUNC price has more than doubled in the past few weeks, also giving it a market cap of over $500 million.
Terra 2.0 (LUNA) price also rallied, reaching a high of $0.00013, its highest level in months. Anchor Protocol (ANC), which offered enticing returns for USTC holdings, has also jumped hard in the past few days.
There are two main catalysts for this surge. First, in a statement on Monday, Binance said that it would list USTC perpetual futures in its platform. The listing means that these futures tokens will have a 50x leverage, making them ideal for day traders.
Cryptocurrency prices tend to rally after a listing announcement by Binance, the biggest crypto exchange in the world. In most cases, these post-listing jumps tend to last for a few days.
Second, USTC token jumped after developers issued a roadmap to return its peg to $1. As part of this strategy, the coin will be backed or collateralized by Bitcoin, the biggest cryptocurrency in the world. They are also working on a plan to airdrop for LUNC and USTC.
It is also worth noting that this rally happened a week after Montenegro agreed to extradite Do Kwon to the United States, where he faces a major lawsuit. He has been charged with securities fraud, wire fraud, and other crimes and he faces decades in prison. Do Kwon also faces more charges in South Korea, his home country.
The fundamentals of USTC, Terra Classic, and Terra 2.0 are simply not there. However, the tokens will likely see more traction if the Federal Reserve starts to slash interest rates in the coming year.
As you recall, Terra and its ecosystem collapsed in May 2022 as the USTC stablecoin lost its peg. This collapse led to over $40 billion wipeout, the biggest one in history.
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