Top Crypto: UST Classic Leads Weekly Top 100 Winners

Terra blockchain algorithmic stablecoin UST leads the winners chart of the week, returning to the top 100 by market cap, 65th, with a market cap of $587 million at the time of writing this article.

The crypto market turned bearish this week, with the market cap falling below $900 billion at the time of writing. This is because Bitcoin once again fell below the $20,000 trading zone as Fed Chair Jerome Powell’s comment on a forum raised fears of further rate hikes in the future to contain the constantly rising inflation.

Jerome Powell’s comments to the ECB forum made investors nervous this week. When asked on Wednesday how the economy would weather a potential wave of rate hikes, he said:We are raising interest rates and the goal is to slow growth so supply has a chance to catch up. We hope that growth can still remain positive. But if you look at the strength of the economy: households are financially very good for it, they still have a lot of savings – forced savings due to not being able to travel and things like that – and tax payments. The same is true for companies, with very low defaults and a lot of money on the balance sheet. The labor market is also extremely strong and continues to show very strong monthly employment growth on average. Overall, we believe the US economy can withstand tighter monetary policy.

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Why USTC Tops the Rankings

According to CoinMarketCap, more than 45% of trading volume came behind the surprising USTC and LUNC price surge of KuCoin, a centralized exchange believed to be operating out of Seychelles.

KuCoin’s is a crypto exchange and its main funder is NEO Global Capital, a Singapore-based venture capital firm that is also exposed to financial platforms such as Babel Finance and CoinFLEX. Both platforms have faced liquidity issues due to the ongoing decline of the crypto market.

InvestmentU, a financial analysis group, said in its June 28 note: “It’s not a cycle of boom, bust, and boom again,” adding that LUNC could plummet because “the technology behind it is dead.” They further added: “The raison d’être (LUNC) has been defeated. And its price too. While we can appreciate investors’ natural desires for excessive profits, there are better ways to go about it than that.

The outlook looks similar for the USTC, which has failed to fulfill its primary function of providing customers with a digital, stable version of the US dollar.

What you should know

  • Terra’s $40 billion experiment to create a working “algorithmic stablecoin” project backfired drastically after it collapsed in May. Nevertheless, the original stablecoin TerraClassicUSD (USTC), formerly called TerraUSD (UST), has blossomed over the past week, with many associating the rally with that of a “walking Dead man”.
  • In summary, UST lost its peg to the US dollar in May following massive withdrawals from Anchor Protocol, a lending platform that offers clients up to 20% returns on their UST deposits. At the time of writing, the token is still trading well below its peg, trading at $0.056, down 94.4% from its assumed peg of $1, with many concluding that this is the end of the line for the project. used to be.
  • However, the USTC started rising after that, so much so that the value per token reached nearly $0.10 on June 29. At the same time, the capitalization soared to $767 million according to data from CoinMarketCap. This comes despite USTC operating as an expired token after Terra launched a new blockchain with a new LUNA 2.0 native asset, following a hard fork in May.
  • Interestingly, the old version of LUNA 2.0, called LUNA, which now operates as “Terra Classic (LUC)”, also saw an increase in market valuation like the USTC, from about $160 million to $767 million in June. Amid the heightened volatility related to Terra’s new LUNA 2.0 token, USTC managed to register an increase of over 400% in the past 7 days. USTC’s 24-hour trading volume rose 413% to $83 million.

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