The price of UST skyrocketed in the last 24 hours, with many people flocking to buy. The coin is getting closer and closer to reclaiming its dollar peg. Terra is preparing for a reboot, which might explain the increase.

The project has announced a major distribution over the next few days. Here are some tips:

  • UST had plunged nearly 90% against the dollar after it de-pegged.
  • Altcoins are alternative cryptocurrencies. They are digital assets that use cryptography to secure their transactions.
  • The coin has recovered and is presently valued at about $0.8 on the dollar.
  • A cryptocurrency is a digital or virtual asset designed to work as a medium of exchange.
  • The coin is still facing significant swings in price for a stablecoin.
Data Source: Tradingview

Will UST reclaim its peg?

However, it is still possible, based on the recovery we have seen in the previous two weeks; that the stablecoin will succeed.

That’s not, however, the most significant aspect. Stablecoins are designed to be “steady.” The type of volatility we witnessed in UST, on the other hand, was enormous.

Even if the cryptocurrency reaches $1, it is certain to continue dropping and rising. This will most assuredly keep investors at bay.

Furthermore, this brief surge is probably driven by short-term buyers, who are generally investors looking to cash in on Terra’s reboot. They’ll undoubtedly take their profits and UST will plummet again. 

Where it does reclaim its peg, it would be hard to trust the coin with such big swings. The airdrop is affecting the price and we will have to see how things develop in the coming days.

But as it stands, it looks like the market is still trying to figure out what to make of Terra.

So, while the $1 mark may be significant in the short term, it is not a good indicator of long-term stability. It is more likely that UST will continue to be volatile in the coming days and weeks.

Even if Terra can reboot successfully, restoring investor confidence in UST will be a difficult task. Even after the reboot, investors will remain cautious until they see concrete results.

So while there is a genuine opportunity for UST to reach $1, achieving that milestone will be an uphill struggle. Investors will continue to be on the fence even if the price does reach $1.

What is the best way to trade UST?

The greatest approach to trade UST is to concentrate on short-term volatility. There will be chances to buy dips and make a profit. The currency is currently rising, and it might get close to $1 soon. But it is still early to say whether or not it will break that barrier.

When it reaches a certain level, cut it short. However, you’ll have a hard time finding exchanges that will accept this transaction. If UST stays above $1 for a few weeks, do not keep it for the long term.

Right now, the ball is in Terra’s court. If they can pull off the 2.0 airdrop successfully, it will go a long way in restoring confidence in UST. However, if the airdrop is marred by any delays or technical issues, it could further damage UST’s reputation.

The 2.0 Terra airdrop is just around the corner, and it’s already having an impact on the price of UST. The stablecoin spiked in recent days as investors speculate about what the airdrop will mean for the future of the coin.

Terra’s 2.0 airdrop is designed to improve the stability of UST and increase its utility by giving holders access to new features and rewards.

For now, traders should focus on intra-day and short-term trades. UST could be a good coin to scalp profits from. But as always, trade with caution and do your research before investing.

James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.