Terra's Stablecoin USTC Hikes 80% in the Past 7 Days

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The breakdown of the Terra Luna ecosystem has a significant impact on algorithmic stablecoins. Tobias Andersen, a blockchain developer, suggested using quantitative tightening (QT) in a USTC re-peg proposal that was posted on Medium on October 9. QT can be utilized by Terra to recapitalize the stablecoin. Additionally, Andersen believes USTC to be a significant resource for the Terra community and that its price may be increased to its original $1 worth.

Since this idea was made public, USTC's price has risen by roughly 80% during the past week. It has been moving in a bullish trend since the Sunday news. At the time of writing, USTC is trading at $0.056, a 30% rise from the previous day. The plan also suggests that a more robust market maker mechanism be built by the Terra community in order to incentivize more businesses to develop cutting-edge apps on the network.

Quantitative easing (QE), albeit used by many countries, like Japan, to stimulate their economies, has few opportunities and poses a significant danger when it comes to re-pegging USTC. According to Andersen, the Terra community will benefit more in the long run by using QT in the form of burning taxes to recapitalize the stablecoin USTC. Because of this, MEXC Global has been a supporter of Luna's burning system, and we are sure that the Terran community is strong and vibrant enough for us to cooperate in reestablishing the environment.