How to Buy

TerraClassicUSD is one of the few algorithmic-backed stablecoins in the crypto market but has struggled since the collapse in May 2022. Due to excessive minting of new tokens on the former Terra ecosystem, USTC and LUNC have extremely high circulating supply, exerting downward pressure on both tokens value and causing major losses to previous investors.

An uptick in investor confidence could help the USTC climb back towards the $1 level in the future, restoring the peg to the US dollar. Such a move could encourage higher adoption of stablecoin among users and projects.

In addition, this could also encourage more developers to design and deploy dApps on the Terra Classic blockchain, utilizing the USTC coin. Such a boost to the Terra Classic ecosystem could also increase the burn rate of LUNC in the market, contributing to upward movement in the TerraClassicUSD price.

On the downside, you could be cautious about investing in the USTC crypto due to the potential regulatory challenges the project will likely face. The Terra brand is yet to recover from the collapse of the old UST stablecoin and LUNA 1.0, which hold back its re-pegging efforts, making it a digital asset to wait and watch before investing.

Before its collapse, the TerraUSD (UST) was the largest algorithmic stablecoin in the crypto market and the third-largest stablecoin in the entire sector. However, the UST lost its peg to the US dollar in early May 2022 when whales or large crypto holders started moving UST liquidity out of Anchor Protocol.

Anchor Protocol was one of the most popular DeFi platforms that offered attractive returns on lending UST, going up as high as 19.5%. However, the issue built up even before this when there were more lenders of UST on the platform than users borrowing UST, leading to an imbalance. The imbalance made the high yields offered by Anchor Protocol unsustainable.

The sharp sell-offs in May triggered panic among UST investors who dumped the stablecoin, causing the Terra blockchain to frantically mint more LUNA to attempt to re-stabilize the peg to the US dollar. This failed when the LUNA price also crashed while UST headed further away from the $1 mark, leading to an implosion in Terras star crypto assets.

The events of late May 2022 resulted in investor losses estimated at over $40 billion. While Terras founders announced a revival plan that involved the creation of a brand new Terra blockchain and rebranding Terra 1.0 to Terra Classic, as of August 2022, Terraform Labs is yet to restore investor faith in its stablecoin, now known as TerraClassicUSD (USTC).

As of August 2022, the total supply of USTC crypto stands at a little over 10.25 billion tokens. The circulating supply of the TerraClassicUSD stablecoin is just above 9.8 billion.

The high circulating supply of the USTC token is also a key reason the stablecoin has remained de-pegged from the US dollar. As more tokens are destroyed amid strong crypto adoption, the market capitalization of USTC could remain supported and help the TerraClassicUSD price bounce back to $1.

The following are the critical differences between TerraUSD (UST) and TerraClassicUSD (USTC) stablecoins:

Operating Blockchain

The UST stablecoin functioned on the old Terra network. Following the market crash in May 2022, Terraform Labs rebranded this blockchain to Terra Classic, while its stablecoin UST was rebranded as TerraClassicUSD (USTC).

The company then launched a new blockchain network called Terra, which no longer supports stablecoins. Its native digital token is also called the LUNA. Meanwhile, the old Terra blockchains native asset LUNA 1.0, has been rebranded as LUNA Classic (LUNC).

Peg to USD

The former UST stablecoin used to be a highly popular stablecoin in the crypto market, ranking third at its highest in terms of trading volume, market cap, and usage in April 2022. The TerraUSD stablecoin had successfully managed to maintain its peg to the US dollar until the market crashed in May 2022.

Market Rank and Market Cap

Before the collapse, the former TerraUSD crypto was among the top 10 cryptocurrencies by market cap. The highest ever market cap for the UST crypto was over $9 billion when its adoption touched a record high in December 2021.

On the other hand, the market rank of the TerraClassicUSD coin stands at 112 as of August 2022. The market cap of the USTC token holds at just under $317 million at the time of writing.

The TerraClassicUSD (USTC) value is yet to touch the $1 mark as of August 2022 following the rebranding efforts, t. The inability of USTC to reclaim its peg to the USD stems from the extremely high circulating supply of USTC and LUNC tokens in the market. At the same time, its adoption among users remains far lower than its previous version once enjoyed.

You can generate a stream of passive revenue by staking UST. Several leading crypto platforms offer attractive passive income potential on your TerraClassicUSD holdings. Heres how to stake USTC for attractive returns:

1. Perform online research to find the platforms (CEXs and DEXs) that offer APYs on staking USTC.

2. Review their performance, feedback, and interest on offer before selecting the right platform you wish to stake TerraClassicUSD with.

3. Create an account on the platform and fund your wallet with USTC purchased via BYDFi or other sources.

4. Head to the Stake or Staking section of the platform, enter the number of USTC coins you wish to stake, and select the duration you want to lock your holdings for.

5. Review all details of the transaction before confirming the staking process.

6. Once your order is processed, sit back, earn rewards for staking USTC and grow your crypto holdings conveniently.