Deep Dive
1. Terra Classic Upgrades (Bullish Impact)
Overview: The Terra Classic v3.5.0 upgrade (August 15, 2025) aims to restart the Market Module, enabling on-chain USTC functionality and improved stability. Historical precedent shows LUNC surged 320% after the February 2025 v3.4.0 upgrade. Analysts project a 180% USTC price gain if successful (Binance).
What this means: Reactivating core protocol features could restore investor confidence and increase USTC’s utility in DeFi, driving demand. However, execution risks remain, as past upgrades have not fully stabilized the asset.
2. Exchange Delistings (Bearish Impact)
Overview: OKX will delist USTC/USDT and USTC/USD pairs on September 29, 2025, following liquidity and compliance reviews. Deposits were halted on September 22, with withdrawals ending December 22 (OKX).
What this means: Reduced exchange access may amplify volatility and deter new buyers. USTC’s 24h volume ($3.84M) already reflects thinning liquidity, and delistings could push turnover (6.15%) lower, increasing slippage risks.
3. Regulatory & Legal Pressures (Mixed Impact)
Overview: Do Kwon’s guilty plea in the $40B Terra collapse case (August 2025) keeps regulatory scrutiny high. Meanwhile, MiCA’s stablecoin rules forced EU exchanges to delist non-compliant assets like USTC by March 2025 (CryptoMus).
What this means: While USTC isn’t a stablecoin, its association with Terra’s legacy invites regulatory friction. However, resolving legal cases could lift uncertainty, potentially reopening U.S. exchange listings.
Conclusion
USTC’s path is torn between technical revitalization and structural headwinds. The August upgrade offers a near-term bullish catalyst, but exchange exits and regulatory ambiguity cap upside. Watch USTC’s post-upgrade volume – sustained demand above $0.015 could signal momentum, while failure to hold $0.01 may trigger sell-offs. Can Terra Classic’s community outpace regulatory decay?