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.