Based on recent information from the Terra Luna Classic community (#LUNC ), it can be seen that $USTC (TerraUSD Classic) is the focus of many supply adjustment efforts — primarily through token burn campaigns. However, it is important to clarify one key point: USTC is not a stablecoin pegged 1:1 to the USD like the original UST, but is an independent token, with its value entirely dependent on supply and demand and community trust.
Factors affecting the current price of USTC:
- Token burn campaigns are actively ongoing:
- Over 726 million USTC has been burned after proposal number 12135.
- New proposals to burn an additional 46.55 million and potentially up to 800 million USTC are being considered or have been proposed by validators.
→ Reducing supply often creates short-term upward price pressure — *if demand remains constant or increases*.
- ⚠️Lack of price peg mechanism or guaranteed reserves:
Unlike $USDC or #DAI , USTC has no collateral assets, no price stability protocol, and is not supported by any major payment platforms or DeFi applications currently. The price of USTC is entirely determined by the market.
- 📉 The overall market context is weak:
As reported, #LUNC decreased by 15% over the week, and USTC also experienced a general decline from the altcoin market — especially as investor sentiment is cautious ahead of macro events (e.g., the inauguration of the U.S. President).
- 🔁 The connection with LUNC:
USTC often moves in the same direction as LUNC since both are part of the Terra Classic ecosystem and share the same community. When LUNC loses liquidity or trust, USTC is easily affected as well.
“Will the Terra community continue to push the price of USTC higher?”
→ There is no basis to assert that the price of USTC will sustainably increase just because the community wants to push the price.
→ Actions like token burns are technically positive, but not enough to create strong upward momentum without inflows, actual liquidity, and real-world applications.
The information above is for reference only and is not investment advice.
