USDT and USTC are two completely different tokens, each with a different purpose and use in the cryptocurrency market. Here’s the difference between them:

1. USDT (Tether):

Definition:

USDT is a stablecoin backed by Tether.

It aims to maintain a fixed value of $1.

Usage:

It is used as a means of storing value and reducing volatility in the cryptocurrency market.

It is considered one of the most popular stablecoins.

Support:

Each unit of USDT is supposed to be backed by traditional assets such as the US dollar or other equivalent assets.

Networks:

It works on multiple networks such as Ethereum, Tron, and Binance Smart Chain.

2. USTC (TerraClassicUSD):

Definition:

USTC is the former stablecoin of the Terra network, and was known as UST before its collapse.

Designed to be a stablecoin based on algorithms rather than traditional backing.

Usage:

It was used as part of the Terra ecosystem to provide stability.

It lost its peg to the US dollar after the Terra collapse in May 2022.

Current status:

USTC is no longer a stablecoin, and its value has become highly volatile.

It is now considered a speculative currency, and is no longer used as a stable currency.

The main difference:

USDT: Still a widely used and stablecoin.

USTC: It has lost its stability and original value, and has become a volatile currency.

Conclusion:

If you are looking for a stablecoin to use for trading or storing value, USDT is the choice.

For the most suitable. As for USTC, it has become high risk and is used for speculation only.