Terra Classic USTC jumps with 180% increase in volumes
TerraClassicUSD (USTC) price is suddenly up 12% over the past 24 hours, reaching an intraday high of $0.042 at press time. This comes as most cryptocurrencies are trading in the red and some have minimal leverage. According to CoinMarketCap data, USTC’s trading volume has also increased by 180 percent in the past 24 hours.
At the time of publication, USTC was changing hands at $0.038.
Although the reason for the sudden surge is unclear, it may have been partly driven by the new proposal that reduces the tax burn by 0.2%.
The Terra Classic community approved proposal 5234, which lowers the tax burn rate from 1.2% to 0.2% and sets aside an additional 10% of tax revenue for ecosystem contributors and infrastructure.
83% were voted by the community, and 82% yes votes were cast in favor of the proposal. On October 19, the new tax rate became effective with the ERA 98.
Top crypto exchange Binance indicated support for the new tax as it announced updates to the deposit and withdrawal fees for LUNC and USTC on the Terra Classic network.
Binance later reduced the 1.2% consolidation fee to 0.2% for all LUNC and USTC deposits received by Binance. Users will also receive the withdrawal amount minus the withdrawal fee charged by Binance and a 0.2% tax burn.
On Monday, Binance published the results of its third batch burn. According to the data updated on its website, LUNC tokens worth $659,300.76, or 2,500,382,131.16 LUNC, were sent to the burn address. At the time of writing, LUNC, the other token of the rebranded Terra Classic, was marginally up at $0.00025.
