• #wct

  • WCT is the native token of the WalletConnect protocol. WalletConnect is a commonly used interoperability protocol in the crypto field, having connected over 275 million times since its inception in 2018, covering more than 600 wallets and over 61,000 applications. The WCT token can be viewed from the following aspects:

    • Advantages:

    ◦ Extensive application foundation: As the mainstream wallet connection protocol in the Web3 world, it supports over 600 wallets and more than 60,000 decentralized applications, with numerous connection instances and a large user base, providing a certain foundation for token value with a high market penetration rate.

    ◦ Innovative billing model: Achieving cross-chain encrypted communication transmission based on the Optimism public chain, it adopts a 'connection as a service' billing model, charging based on monthly active users (MAU). The more users served, the stronger the potential demand for WCT tokens, opening a new direction for profitability in Web3 service protocols.

    • Risks:

    ◦ Circulation and selling pressure issues: The initial circulation rate of WCT is 18.62%, part of which comes from Binance Launchpool mining releases. The high proportion of early institutional holdings led to concentrated selling pressure on the first day of listing. Private investors have some floating profit space and a tendency to sell, which exerts pressure on the price.

    ◦ Insufficient value capture scenarios: Despite having four major functions—governance, staking, fees, and rewards—the key fee payment scenarios were not implemented in the initial phase after listing. The reward pool tokens also need to be gradually released. The 'issue tokens first, build later' model results in a short-term lack of value capture scenarios, facing doubts of being 'air tokens.'

    ◦ Market volatility impact: The overall crypto market trends significantly affect WCT. In Q2 2025, during the altcoin bear market, investors have low tolerance for high FDV projects, leading to poor performance on WCT's first day of listing. Additionally, its price is highly correlated with Bitcoin's movements, and significant fluctuations in Bitcoin's price will affect WCT's price.

    • Development prospects: If WCT can achieve a fee income ratio exceeding 30% in the second half of 2025, positive real yield on staking, and successful integration with Web2 giants, its valuation system may be reconstructed, and the price is likely to rise significantly. However, currently, WCT faces the challenge of converting technical advantages into economic value; whether it can evolve from a 'connection tool' to a 'value gateway' is key to its future development.

    Overall, the WalletConnect protocol where WCT resides has strong technical capabilities and wide applications, but the WCT token currently faces several issues related to its economic model and market environment.