The following is a comprehensive analysis of the WalletConnect token (#wct), covering its technical positioning, market performance, token economic model, and future outlook:
#wct I. Project Background and Technical Positioning
The WalletConnect protocol is a key infrastructure in the Web3 field. Since its launch in 2018, it has completed over 275 million wallet and DApp connections, covering over 600 wallets and more than 61,000 applications, with a penetration rate exceeding 90%. Its core function is to achieve cross-chain communication through an end-to-end encrypted channel, allowing users to complete transaction signatures without exposing private keys, thereby enhancing security and interaction experience. In April 2025, the protocol launched its native token WCT, aiming to promote ecological decentralization through a token economic model and expand its value capture capability as a 'connection layer protocol.'
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### II. Token Economic Model and Distribution
1. Total token supply and distribution
- Total supply: **1 billion tokens**, no inflation mechanism, whether to introduce one in the future will be decided by community vote.
- Distribution structure:
- Foundation ecological construction (27%), **Airdrop incentives** (18.5%), **Team and early supporters** (30%), **Staking rewards** (17.5%), etc.
- Initial circulating supply: **186.2 million tokens** (accounting for 18.62% of the total), with 44% coming from Binance Launchpool mining.
2. Core functions
- Governance voting: Holders can participate in protocol upgrade decisions.
- Staking yield: Initial APY as high as 85%, but some rewards rely on inflation, which may trigger a 'mining-extraction-selling' cycle.
- Fee deductions: Plans to charge high-frequency applications a fee of 0.1-0.3 WCT per MAU, potential annual revenue may reach $30 million.
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### III. Market Performance and Price Dynamics
1. Historical price trends
- Initial launch on April 15, 2025: Opening price around $0.2-0.4, circulating market cap of $53 million, due to low circulation rate and depressed market sentiment, the first day's increase was only 1.5 times.
- May 2025: Significant price volatility, reported at $0.42 on May 10 (¥3.09), rising to $0.5968 on May 22, with a 24-hour increase of 21%, and a market cap exceeding $111 million.
- Key driving factors: Bitcoin market correlation, DeFi demand recovery, and ecological cooperation promotion (such as Layer2 integration with Arbitrum and Optimism).
2. Exchange performance
- Major trading pairs: WCT/USDT dominates, with liquidity concentrated on platforms like Binance and OKX, with a 24-hour trading volume exceeding ¥440 million.
- Derivatives market: Platforms like OKX have launched perpetual contracts with a maximum leverage of 20 times, and the funding rate mechanism suppresses short-term volatility.
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### IV. Future Development and Price Prediction
1. Short term (2025)
- Optimistic scenario: If payment scenarios are implemented and staking yields turn positive, prices may exceed $0.6-1.5.
- Neutral scenario: Affected by overall market corrections, price range of $0.4-1.0.
- Risk factors: Selling pressure from stakers (especially the 40 million tokens released from Binance Launchpool), regulatory uncertainty (such as the SEC's scrutiny of utility tokens).
2. Long-term (2026-2030)
- Ecological expansion: Cross-chain interoperability upgrades, integration with NFTs and the metaverse, cooperation with Web2 giants may drive market cap growth.
- Price potential: If the protocol transforms into a 'value gateway', the FDV/income ratio drops to a reasonable range of 10x, the price may reach $2-5.
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### V. Risks and Challenges
1. Token utility lag: Current functions focus on staking and trading, while payment of fees and governance scenarios have not yet been fully activated, leading to doubts about 'airdrop tokens'.
2. Market competition: Need to cope with the pressure from wallet tokens like MetaMask (not yet issued but has a large user base) and Trust Wallet (market cap of $350 million).
3. Liquidity risk: High-frequency quantitative strategies from market makers may exacerbate volatility, as seen with OKX's opening day amplitude reaching 15%.
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### VI. Investment Strategy Suggestions
1. Long-term holding: Focus on ecological expansion (such as WCTChain development, cross-chain interoperability) and the growing demand for Web3 infrastructure, suitable for investors optimistic about the underlying value of the protocol.
2. Short and medium-term trading: Utilize technical signals (such as RSI, support level at $0.35) to accumulate at lows, target range of $0.6-0.7, with a stop-loss set below $0.3.
3. Diversifying risks: Avoid high-leverage operations and prioritize high liquidity platforms like Binance and OKX.
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#wct Summary
WCT, as the core token of the Web3 connection layer, has technical advantages and ecological potential, but needs to overcome bottlenecks such as low token economic conversion rates and intense market competition. Its price trend will highly depend on the implementation of protocol functions, market cycles, and regulatory environments. Investors should comprehensively assess the risk-reward ratio and adjust strategies dynamically.