No matter how much USTC rises, it cannot be anchored to the US dollar again! And at present, the Terra sector has only a 4-fold chance of skyrocketing at most. Although the stablecoin theme is very hot, the stablecoin USTC cannot be anchored to 1 US dollar again no matter how much it rises! 1. The reason why USTC will not anchor to 1 US dollar: USTC is no longer an algorithmic stablecoin. Since the collapse of Terra in May 2022, its stabilization mechanism has failed and it currently exists only as an ordinary token. Its price fluctuations mainly depend on market sentiment and speculation, rather than its anchoring relationship with the US dollar. Although market speculation may cause its price to fluctuate sharply, it will not rise directly to 1 US dollar because of a surge. 2. The Terra sector has only a 4-fold chance of skyrocketing: The possibility of USTC returning to 1 US dollar is extremely low. The current circulation is about 6.8 billion. If the price returns to 1 US dollar, its market value must reach 6.8 billion US dollars, far exceeding the current market's reasonable expectations of its value. Moreover, the Terra Classic ecosystem has almost returned to zero after the collapse, USTC lacks practical application scenarios, and the market's trust in its technology and team has completely collapsed. These factors have limited the space for USTC to rise sharply. In addition, even if there are short-term positive factors such as token destruction proposals, it is difficult to significantly change its supply and demand relationship and market expectations.
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