@WalletConnect Token’s price hinges on adoption, supply dynamics, and governance shifts.

Supply Unlocks – 81% of tokens remain locked, risking dilution

Staking Redesign – New perpetual staking model could stabilize holdings

Solana Integration – Expanded utility via Binance and Visa partnerships

Deep Dive #WalletConnect $WCT

1. Token Unlocks & Inflation Risk (Bearish)

Overview:

Only 18.62% of WCT’s 1B max supply is circulating, with team, backer, and development tokens (56.5% of total) subject to 4-year unlocks starting April 2025. Current FDV ($571M) is 10x its market cap ($57M), creating sell pressure risks as vested tokens gradually release.

What this means:

Large unlocks (next major cliff: April 2026) could suppress prices if demand doesn’t offset new supply. Historical data shows WCT dropped 46% from its $1.39 ATH post-listing , partly due to early investor exits.

2. Governance & Staking Overhaul (Mixed)

Overview:

A July 2025 governance proposal introduced perpetual staking with fixed durations (4–104 weeks) and user-controlled unlocks, aiming to reduce volatility. Over 121M WCT (65% of circ. supply) are already staked at 22% APY.

What this means:

Longer lock-ups might curb sell pressure, but flexible exits could trigger rapid unstaking during downturns. The model’s success depends on whether rewards offset inflation risks from future token emissions (governance could enable inflation post-2028).

3. Adoption vs. Competition (Bullish)

Overview:

WalletConnect’s integration with 600+ wallets and 66K+ apps (309M connections) provides a moat. Recent Solana integration and Binance support (July 2025) improved liquidity, while Visa’s AI payment partnership (Crossmint) hints at enterprise use cases.

What this means:

Network effects could drive demand: Every 10% increase in WalletConnect’s user base (currently 23M) historically correlated with 6–8% WCT price gains. However, rivals like Web3Auth and Magic Eden’s wallet tools threaten market share.