What Caused Terra Classic Tokens Incredible Price Surge

0
  • Terra Classic tokens, USTC and LUNC, witnessed an impressive surge in trade volumes and prices attributed to specific events initiated by Binance and Terra Classic Labs.
  • Despite the substantial gains, both tokens faced profit-taking, leading to a decline in prices in the short term.

The recent surge in TerraUSD (USTC) and LUNC, rebranded as Terra Classic after the collapse of the Terra ecosystem, has caught the attention of the crypto market. This remarkable price surge has seen Terra Classic USD (USTC) soar by an astonishing 300% in the past week.

Similarly, LUNC experienced a significant increase of up to 65% following the announcement of the LUNC/TRY trading pair on Binance. Shedding light on this sudden market movement, research firm Kaiko has unearthed the underlying reasons for the surge in trade volumes and prices of Terra Classic tokens.

Kaiko’s analysis indicates a direct correlation between Binance’s introduction of a highly leveraged USTC-USDT perpetual futures contract on November 27 and Terra Classic Labs (TCL) investing a hefty $500 million in the USTC stablecoin.

The commencement of USTC perpetual contracts on November 27 sparked an upsurge in trading activities, propelling the daily trade volume of the stablecoin to an impressive $1.3 billion. Kaiko’s findings trace the origins of USTC’s remarkable surge back to a sequence of significant buy orders initiated on November 23, setting off a chain reaction.

USTC’s upward momentum was evident from a series of substantial buy orders on November 23, which triggered an immediate price increase. Subsequently, several large sell orders were observed, leading to a notable increase in market share, surging from nearly zero to 6.5% within days. The USTC trading chart illustrates a clear surge in prices following these key events.

While LUNC also rode on this positive sentiment, observing a 90% increase in trading volume to $380 million since the start of November, profit-taking ensued after the substantial surge experienced by both tokens. At present, Terra Classic (LUNC) demonstrated a 2.94% decline in the last 24 hours, valued at $0.000202.

However, it remained up by 75% in the last seven days. Similarly, Terra Classic USD (USTC), previously UST stablecoin, faced a 1.28% decline in the last 24 hours to $0.045, marking an 11.84% increase over the last seven days.

Also Read: Terra Classic (LUNC) Soars 50% Following Binance’s Fresh Listing Announcement

Leave a Reply

Your email address will not be published. Required fields are marked *