Just when everyone thought TerraUSD (UST) was done for, it ended up proving to be a huge shock for everyone. On May 25, while the majority of the investors of TerraUSD were resting or sleeping, it experienced a great rally.
The Rally Experienced by TerraUSD
On May 25, the trading price of the UST/USD pair recorded a boost that was more than 400%. However, the rally didn’t last for long as the trading price of the pair ended up crashing. The performance graph for TerraUSD shows that its price ended up getting dragged down to $0.1.
On that particular night, some of the investors would have been shocked to see how UST was playing up. Its price reportedly experienced two surges at two different intervals.
The first time the rally tide came in, TerraUSD’s price went over the $0.3 mark. The second tide also resulted in the same until both rallies ended up crashing. At the time of writing, UST is worth $0.06939. This shows that despite the rallies, it was a rare sight for the investors.
The Possibility behind the Surge
Although there is no confirmed information surrounding the instances, the analysts have shared their own theories surrounding the matter. According to them, the sudden rises and dips could be the doing of some very keen investors or trading bots.
The sudden rise and fall in UST’s price mean that the investors who were available when the rally was observed, took advantage of the situation. They could have been the first to have gotten rid of the UST in their possession to generate gains.
Another possibility is surrounding the trading bots that would have acted based on the instructions given to them for a particular threshold. Everyone knows how the trading bots work and their programming may have made them proceed with the sales to benefit from the opportunity.
Were the Whales Behind it?
Some analysts are pointing toward the whales claiming that they may have been involved in such an activity. For now, there is no clarity surrounding the matter and the on-chain firms are still investigating the occurrences. However, the majority of the investors are not siding with this theory.
Ever since the debacle took place, the transaction volume being triggered by the whales has dropped to almost zero. Therefore, it is highly unlikely that the whales were behind the sudden move.
Two Results from the Recent Occurrences
There are two outcomes that you can assume from the occurrences. The first one is the UST enthusiasts who are trying to bring it back to its $1 peg. Then there can be investors who are just trying to get rid of the UST in their possession and move on to Terra 2.0.
In the upcoming days, it would be the investors who will decide what the fate of UST will be.
The post TerraUSD Surprised Everyone by Registering a Huge Rally appeared first on CryptocyNews.com.
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