Terra Classic (LUNA) and TerraUSD (USTC) are still experiencing the effects of stablecoins losing their value. However, Binance, the world’s largest cryptocurrency exchange, made an announcement that offers hope for a reversal of this trend.
In May 2022, TerraUSD’s loss of its peg against the dollar caused significant fluctuations across the entire cryptocurrency market. Major tokens like Bitcoin and Ethereum were negatively affected by this event. Nonetheless, an announcement by Binance indicated that Terra could take a different course in the coming months.
Binance futures introduced the USD-M USTC perpetual contract on November 27, 2023, which offers leverage of up to 50 times for USTC. This move provided momentum to the Terra ecosystem tokens USTC and LUNC. According to CoinMarketCap, USTC gained more than 36% in value in the last 24 hours.
Terra Classic initiated a bull rally with a positive market sentiment and the LUNC, which has recently shown a double-digit price increase, gained more than 23% in value. At the time of writing this article, LUNC had a market capitalization of $394 million, placing it as the 71st largest cryptocurrency.
While the increase in investor confidence was clearly seen in the rising number of total holders, mixed signals in the confidence of whales towards USTC were highlighted by the decreasing supply in top addresses.