TerraClassicUSD (USTC) has gained by over 63% in a week, making it one of the highest-gaining assets within the timeframe.
Social activity has historically proven to be a major contributing factor to a crypto asset’s price movements. Following the Terra collapse that led to the crash of the Terra ecosystem’s tokens, the assets were left for dead as investors looked to count their losses.
Nevertheless, a spike in social activity for Terra Classic (LUNC), including some bullish proposals to resurrect the asset, saw LUNC stage a massive rally last month. TerraClassicUSD (USTC) was carried along in the September rally before facing a fierce rejection. However, it appears that USTC is looking to make another comeback.
Per data from CoinMarketCap (CMC), USTC has gained by 63.39% in the past seven days, breaking above several resistance points to trade at $0.048 as of press time. USTC, trading sideways at the $0.029 zone last Friday, hit a peak of $0.061 on Wednesday before cooling off.
The last time the asset saw the $0.06 zone was a month ago, during the previous rally that took it to a 4-month high of $0.066 on September 10. The USTC/USD market is witnessing much volatility as of press time, indicating renewed interest in the asset.
As a result of the recent comeback, USTC’s market capitalization has gained by over 63% in 7 days, from a valuation of $290M last Friday to $473M at the time of reporting. The asset has sealed its position on the 72nd spot of top assets by market cap, well above Dash (DASH) and Lido DAO (LDO).
Possible Reasons Behind USTC’s Recent Rally
USTC’s price action appears to benefit from a renewed interest in the asset as social activity picks up.
Besides the recent Binance plans to include USTC on its borrowable assets on the Binance Crypto Loans platform, one of the major factors contributing to USTC’s rise in social activity is a recent debate on two proposals introduced by members of the Terra community aimed at re-pegging USTC.
Alex Forshaw and Tobia “Zarader” Andersen had proposed two varying initiatives that would help in the journey to re-peg USTC. Both initiatives sparked debates amongst the Terra community. Notwithstanding, Terra core developer Edward Kim recently revealed that both proposals could be equally executed and run concurrently.
The new re-peg proposals and the debates on the feasibility of the proposals have unarguably aided in USTC’s social activity spike. This has attracted renewed interest in the asset, contributing to its propitious price movements. USTC remains above the $0.48 level, as it trades at $0.4821 at the reporting time.