25 February, 2024

USTC and LUNC Soar in Value, Catching Traders’ Attention in 2023

3 months ago

28 Nov, 2023

  • TerraUSD (USTC) saw a remarkable price surge, reaching $0.0758 from its stablecoin origins.
  • Terra Classic’s community-approved dynamic validator commissions to address sequence mismatch issues.
  • Binance’s interest and Terraform Labs’ $15M injection signal Terra’s promising resurgence

In a remarkable turnaround, the cryptocurrencies TerraUSD and TerraClassic have caught traders’ attention following significant price surges, with TerraUSD (USTC) reaching an unexpected high of $0.0758. Originally intended to be a stablecoin pegged at $1, USTC’s price increase marks a notable recovery from its 2021 collapse, sparking renewed interest and potential fear of missing out (FOMO) among investors in 2023, as reported by Santiment, a behavioral analytics firm.

Moreover, Terra Classic’s community has recently made a pivotal decision. They favored a dynamic validator commission module, targeting the chain’s sequence mismatch issue. This proposal, “Sequence Mismatch Issue Resolution,” was overwhelmingly approved with over 99% votes. It aims to implement a calculation system that adjusts on-chain validator commissions based on voting power. However, challenges persist Vinh Nguyen from the Layer-1 Joint Task Force Team (L1JTF) highlighted a critical issue related to sequence mismatch, affecting some validators’ operational capabilities.

Additionally, to address these issues, a significant update was passed. Proposal 11885 led to the deployment of the Terrad client v2.3.1. This critical update aims to resolve sequence mismatch problems and introduces a new system for dynamic validator commissions. Hence, this development was crucial in the recent 300% surge in USTC’s value.

Significantly, Binance, a leading cryptocurrency exchange, has also shown interest in TerraUSD. On November 27, Binance Futures announced the USD-M USTC Perpetual Contract launch which offers up to 50x leverage, this move by Binance highlights the growing market confidence in USTC. The contract, with a funding fee settlement frequency of every four hours, is settled in USDT and has a maximum funding rate of ±2.00%.

Besides these developments, Terraform Labs (TFL) had injected $15 million into the Terra ecosystem. This capital infusion, directed towards platforms like Astroport and UraXYZ, aimed at enhancing liquidity for blue-chip assets such as BTC and ETH within the Terra ecosystem. Consequently, Terra now boasts the deepest liquidity for these assets among Cosmos chains.

Furthermore, the current prices of Terra Classic and TerraUSD reflect these positive developments. TerraClassicUSD(USTC) is trading at $0.042878 with a 24-hour volume of $1,558,888,022, while Terra Classic(LUNC) is priced at $0.000103, experiencing a 6.61% rise in the last 24 hours.

These collective efforts and strategic decisions steer the Terra ecosystem toward a promising future. With heightened interest from the community and significant market players like Binance, Terra’s resurgence is not just a possibility but an unfolding reality.