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

Depegged stablecoin Terra Classic USD (USTC) regained a small amount of value today with the news that Binance USD (BUSD) will be de-pegged.

The USTC price rose 19.14% to 3.1 cents in the 24 hours on February 13th. For the past few months (through February 3rd) he was worth less than 2.7 cents.

USTC’s early gains may be due to a set of protocol upgrades scheduled for Feb. 14, or the hype about Cardano’s competing algorithmic stablecoin.

However, today’s rally appears to be partly due to the collapse of Binance USD, which has eroded confidence in centralized stablecoins among some investors. As such, confident investors may be motivated to invest in decentralized stablecoins, especially ones that may lose their pegs and partially recover.

This trend is fueled by the gains seen in other decentralized stablecoins. These stablecoins may be algorithmic or over-collateralized by cryptocurrencies.Neutrino USD rises 13.11% $0.20, USDX [Kava] rose 0.78% to $0.84 and VAI rose 1.96% to $0.97.

USTC’s profit today is the best in its category, but the marginal growth is not enough to recapture the previous $1.00 price peg. This is a level not seen since the Terra project collapsed in May 2022. Additionally, USTC is no longer relevant. A revived Terra project that does not use stablecoins as a core feature.

Still, today’s profits can provide ample leeway for holders to benefit from their investments.

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