USTC Price Soars 137%, This is the Cause of the Rise of the Algorithmic Stablecoin That Once Collapsed!

USTC and LUNC suddenly went up. (Photo; Doc. CryptoKio)

JAKARTA - The USTC algorithmic stablecoin managed to recover from its downturn and recorded a price increase of up to 137.20% in the last 24 hours. USTC, which is one of the crypto projects of the Terra Classic platform, has now improved its performance and made a profit of 170% in the last seven days.

The surge in USTC prices was triggered by news that Terra Classic Labs, an organization focused on developing the Terra Classic project, had acquired 25.6 million USTC worth around $500,000 (IDR 7.8 billion). This purchase is part of the company's policy regarding reserve funds.

This was expressed by user X who is an Official Partner of Luna Classic Labs. The average purchase price made by Terra Classic Labs is $0.021 (IDR 326) per USTC.

With this acquisition, Terra Classic Labs hopes to increase the liquidity and price stability of USTC, which now serves as a promising investment asset. Since the average purchase price, Terra Classic Labs has seen the value of its investment increase by 76.6% from the current USTC price of $0.0371 (Rp 577).

The increase in USTC price also had a positive impact on the Terra Classic (LUNC) token, which is a sibling of USTC. LUNC, which is the main coin of the Terra Classic platform, saw its price increase by 26% to $0.00009825 (Rp. 1.53).

Collapsed Once

For your information, before the fall of Terraform Labs, the names of the two crypto assets above were previously UST and LUNA. Both lost around 99% of their value on May 7, 2022. UST itself is Terra's algorithmic stablecoin. This type uses reserve funds from other crypto assets such as BTC and ETH as a support for its value.

After the collapse of UST and LUNA and the arrest of Do Kwon, this project was rebranded to USTC and LUNC. This effort was made to restore the company's name after the price crash in May last year.