Terra’s classic stablecoin surges on BUSD failure, but is still only worth $0.03

The depegged stablecoin Terra Classic USD (USTC) regained a small amount of value today alongside news that issuance of Binance USD (BUSD) will be halted.

The price of USTC rose 19.14% to 3.1 cents over 24 hours on Feb. 13. For the past several months (until Feb. 3) it has been worth 2.7 cents or less.

USTC’s earlier gains may be due to a planned protocol upgrade set for Feb. 14 or due to hype around Cardano’s competing algorithmic stablecoin.

However, today’s gains seem to be partially due to Binance USD’s failure, which has caused a loss of confidence in centrally backed stablecoins among some investors. As such, confident investors may be motivated to invest in decentralized stablecoins — specifically those that have lost their peg and therefore have a chance of partial recovery.

That trend is supported by gains seen in other decentralized stablecoins, which can be algorithmic or overcollateralized by crypto. Neutrino USD is up 13.11% to $0.20, USDX [Kava] is up 0.78% to $0.84, and VAI is up 1.96% to $0.97.

Though USTC’s gains today are the highest in that category, its minor growth is insufficient to allow it to reclaim its former $1.00 price peg — a level it has not seen since the Terra project collapsed in May 2022. Furthermore, USTC is no longer associated with the revived Terra project, which does not use a stablecoin as a core feature.

Still, today’s gains may provide enough room for holders to earn on their investments.

Bookmark (0)

Related Posts

Investment in European crypto startups defied the 2022 bear market

Investment in European crypto startups defied the 2022 bear market

European crypto startups raised a record level of funding last year and saw increased interest from U.S. investors.

Bookmark (0)
SEC issues investor alert over crypto investments

SEC issues investor alert over crypto investments

The SEC said firms offering crypto investments services might violate several applicable laws, including the federal securities laws.

Bookmark (0)
Uphold ends staking for US customers following SEC guidance

Uphold ends staking for US customers following SEC guidance

U.S. crypto regulations force Uphold to preemptively end staking services for U.S. Users

Bookmark (0)
Congressman Emmer introduces bill providing ‘safe harbor’ to miners, developers and wallets

Congressman Emmer introduces bill providing ‘safe harbor’ to miners, developers and wallets

Under Emmer’s bill, entities that do not custody or control consumer funds should be exempt from stringent regulations.

Bookmark (0)
Coinbase’s Brian Armstrong criticizes US crypto regulation, SEC behavior in Twitter Space

Coinbase’s Brian Armstrong criticizes US crypto regulation, SEC behavior in Twitter Space

Coinbase’s legal challenges with SEC discussed in Twitter Space on Crypto Regulation.

Bookmark (0)
Polygon, ex-Meta executives defend Coinbase following SEC Wells notice

Polygon, ex-Meta executives defend Coinbase following SEC Wells notice

The Blockchain Association, Paradigm, and Messari also responded to events.

Bookmark (0)

Leave a Reply

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