The Terra LUNA ecosystem's controversial algorithmic stable coin TerraClassicUSD USTC has seen a major increase in the last month despite the general market downturn in recent months.
In the last 30 days, the token's value has gone up by 173.505 per cent from $0.006343 at its lowest point in the past month to $0.08942 at its peak. According to CoinMarketCap, the criptocurrency is trading at $0.05681 on Tuesday.
The sudden peak in the value of the virtual currency is interesting because of the rally after the US Dollar lost its value in May and fell below $0.1 in concert with the decline of the Terra ecosystem as a whole.
What causes the price of USTC to go up?
Any definite drivers for USTC's prices are unknown, especially after the prospect of a recovery was crushed with the collapse of the Terra biosphere. Analysts are bewildered by this sudden rally since Do Kwon's involvement in fraud linked to the crash reduced the likelihood of a comeback.
USTC is considered a dead coin for all means and purposes, because developers no longer use the original Terra network to operate decentralised apps dApps and other protocols.
There are many speculations that this pump may be linked to the behaviour of many Crypto whales who are actively investing incryptocurrencies, based on on-chain data. These whales use their cash to drive up the price in order to benefit in the short term.
Individual investors may be contributing to the upswing due to the fact that the token's current market price is much lower than its initial intrinsic value.
The price increase has resulted in investors fear of missing out on FOMO, because they believe that the token will eventually regain its value and are investing in the criptocurrency.