Terra Luna Classic (LUNC) and UST Classic (USTC) have witnessed an impressive price surge this week, defying their downtrend throughout the year. Last month, on October 20, LUNC hit a yearly low of around $0.000055, and USTC plummeted to $0.01 on the same day.
However, both tokens have staged a notable comeback, emerging as some of the top-performing crypto assets in November, with USTC and LUNC experiencing surges of over 335% and 76.85%, respectively, in the past 30 days, according to CoinMarketCap data. Experts in the crypto space keep wondering what could be behind this impressive increase.
Binance Unleashes USTC Perpetual Contracts, Fueling the Rally
The recent surge in USTC and LUNC prices can be largely attributed to a strategic move by Binance. Despite the ongoing legal challenges the exchange faces with the US government, Binance announced the introduction of perpetual contracts for USTC, offering leverage of up to 50x.
This announcement triggered a substantial spike in USTC’s price, soaring above $0.07 on November 27.
Notably, LUNC, USTC’s sister token, also participated in the rally, with its price reaching above $0.00012 on the same day.
Community-Driven Initiative: Pushing Towards the $1 Mark
A significant factor contributing to the resurgence of LUNC and USTC is the proactive involvement of the Terra Classic community. Engaging in various initiatives, community members have actively supported proposals to revitalise the prices of LUNC and USTC, with a common goal of reaching the coveted $1 mark. A notable instance includes the community’s backing of a sequence mismatch proposal.
Social Media Buzz Amplifies Token Momentum
The vibrant community backing LUNC and USTC has played a pivotal role in their recent price surge. Social media mentions for both tokens have experienced a substantial uptick, securing high positions on the social trend charts. The vocal support from the community has effectively attracted new investors to these tokens, contributing to their upward momentum.
Bitcoin’s Rally Acts as a Positive Catalyst
The recent rally of Bitcoin has had a cascading effect on altcoin prices, including LUNC and USTC. As Bitcoin surged past $38,000, it instilled confidence in investors, leading to a broader rally in various crypto assets. The positive sentiment around Bitcoin has undoubtedly played a role in the resurgence of other tokens, including LUNC and USTC.
Selling Pressure Temporarily Halts the Rally
Despite the substantial gains, LUNC and USTC have recently faced selling pressure, resulting in a temporary pullback and a slight dip from the previous surge experienced. At the time of writing, USTC is trading at $0.05323, marking a 5.08% increase in the past 24 hours.
Similarly, LUNC has experienced a 3.52% increase in the last 24 hours, settling at $0.000117.
Nevertheless, it’s important to note that even with this minor setback, both tokens continue to trade well above the prices recorded on October 20, showcasing resilience amidst market fluctuations.