• Terra’s classic stablecoin (USTC) saw gains of 19% today in response to news that issuance of Binance USD (BUSD) will be halted.
• USTC had been trading at $0.027 or less for several months before the surge, indicating that investors are turning to decentralized stablecoins like USTC as a safe-haven asset.
• Gains were also seen in other decentralized stablecoins such as Neutrino USD, USDX [Kava], and VAI.
Terra’s Classic Stablecoin Sees Surge
Terra’s classic algorithmic USD stablecoin, Terra Classic USD (USTC), saw a surge of 19% today on Feb 13th. The surge was in response to news that issuance of Binance USD (BUSD) will be halted, causing a loss of confidence in centrally backed stablecoins among some investors who have turned to decentralized options instead, such as USTC.
USTC Price History
USTC had been trading at $0.027 or less for several months until Feb 3rd when it began gaining value again. This indicates that some investors are turning to decentralized stablecoins like USTC as an alternative safe-haven asset given the failure of centrally controlled BUSD.
Gains In Other Decentralized Stablecoins
Today’s gains weren’t limited to USTC alone; other decentralized stablecoins also saw growth over the same period — Neutrino USD rose by 13.11%, now worth $0.20; USDX [Kava] rose 0:78%, now worth $0.84; and VAI increased by 1:96%, now worth $0.97 respectively.
Recovery From Collapse
Despite these gains though, it is unlikely that USTC will manage to reclaim its former price peg of $1 due to its collapse in May 2022 and because it is no longer associated with the revived Terra project which does not use a stablecoin as a core feature anymore.. However these modest gains may still provide enough room for holders to earn on their investments if they choose to do so wisely..
Conclusion
Overall this recent surge shows that decentralized cryptocurrencies remain resilient even against central bank failures and can still offer potential returns despite their past collapses or lack of association with larger projects — providing users with an alternative option for investing should they decide so wisely
