Lost stablecoin Terra Classic USD (USTC) recovered slightly today following news that Binance USD (BUSD) will cease distribution.
On February 14, the price of USTC rose 29% to 3.4 cents in 24 hours. For the past few months (as of Feb. 3), it’s been selling for 2.7 cents or less.
USTC’s previous gains could be due to a planned protocol upgrade slated for February 14, or due to the hype surrounding Cardano’s competing algorithmic stablecoin.
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However, today’s rally appears to be due in part to BUSD’s failure, which has caused some investors to lose faith in the centrally-backed stablecoin. As such, confident investors may have an incentive to invest in decentralized stablecoins—that is, those that have lost their pegs and thus have a chance of recovering in part.
This trend is supported by gains in other decentralized stablecoins, both algorithmic and crypto overcollateralized. Neutrino USD was up 13.11% at $0.20, Kava’s USDX was up 0.78% at $0.84 and VAI was up 1.96% at $0.97.
While USTC’s jump today was the highest in the category, it wasn’t enough to bring it back to its previous fixed price of $1 — a level not seen since the Terra project’s debacle in May 2022. Additionally, USTC is no longer affiliated with the revived Terra project, which does not use stablecoins as a core function.
However, today’s profits may provide enough room for holders to make money on their investments.
- Terra backers want to pump 4,900% of USTC back to $1
- Because Kwon is about to appear on the Unchained Podcast – Will the prices of LUNA, USTC, LUNC increase?
According to Cryptoslate