- Terra Classic tokens USTC and LUNC have seen impressive surges in trading volume and price due to certain events launched by Binance and Terra Classic Labs.
- Despite significant gains, both tokens faced profit-taking, causing their prices to decline in the short term.
The recent surge of TerraUSD (USTC) and LUNC, which was rebranded as Terra Classic after the collapse of the Terra ecosystem, has captured the attention of the cryptocurrency market. This incredible price surge has sent Terra Classic USD (USTC) soaring to incredible levels. 300% last week.
Likewise, LUNC experienced a significant increase of up to 65% after the LUNC/TRY trading pair was announced. Binance. Research firm that highlights these sudden market movements Wharf We have discovered the root cause of the surge in trading volume and price of Terra Classic tokens.
why #soil Ecosystem token rally last week?
The surge in price and volume is linked to Binance listing highly leveraged USTC derivatives and investing $500 million in stablecoins.
Full analysis: https://t.co/q0M2f9MsRV pic.twitter.com/nA3L5RvSsj
— Kaiko (@KaikoData) December 8, 2023
Kaiko’s analysis shows a direct correlation between Terra Classic Labs (TCL) and the highly leveraged USTC-USDT perpetual futures contract that Binance introduced on November 27th. A huge amount of $500 million was invested in USTC stablecoin.
The launch of the USTC perpetual contract on November 27 saw a surge in trading activity, growing the stablecoin’s daily trading volume to an impressive $1.3 billion. Kaiko’s research shows that USTC’s remarkable rise can be traced back to a series of large buy orders that began on November 23rd, which triggered a chain reaction.
USTC’s upward momentum was evident in a series of large buy orders on November 23, which triggered an immediate price increase. Several large sell orders were then observed, which led to a noticeable increase in market share, jumping from almost 0% to 6.5% in a matter of days. The USTC trading chart shows a clear surge in price following these major events.
LUNC also benefited from this positive sentiment, recording a 90% increase in trading volume to $380 million since early November, while both tokens saw significant surges followed by profit-taking. Currently, Terra Classic (LUNC) is seen down 2.94% over the last 24 hours with a value of $0.000202.
However, it has remained up 75% over the past seven days. Likewise, Terra Classic USD (USTC), formerly the UST stablecoin, fell 1.28% to $0.045 over the past 24 hours and is up 11.84% over the past 7 days.