✅ WalletConnect Token (WCT) fell 2.46% in the past 24h, underperforming the broader crypto market (-0.56%). Key factors include profit-taking after recent developments, concerns about high token supply unlocks, and mixed technical signals.
Post-Airdrop Profit-Taking – Recent 5M WCT Solana airdrop recipients likely sold tokens, adding downward pressure.
Supply Inflation Risks – Only 18.6% of WCT’s 1B total supply is circulating, creating fear of future dilution.
Bearish Technical Setup – RSI at 38.5 signals oversold conditions but lacks reversal confirmation, with MACD in negative territory.
Deep Dive
1. Post-Airdrop Sell Pressure (Bearish Impact)
Overview: The July 14 WCT airdrop distributed 5M tokens to Solana users via partners like Phantom and Jupiter. Historically, airdrops trigger short-term sell-offs as recipients monetize free tokens. WCT’s trading volume surged 18.2% to $30.4M during the drop, suggesting increased selling activity.
What this means: While airdrops boost awareness, they often lead to immediate supply influx without matching demand. The 5M WCT distribution represents ~2.7% of circulating supply – significant enough to impact thin liquidity markets.
What to look out for: On-chain data for airdrop recipient wallets (via Solscan) to confirm sell patterns.
2. Tokenomics Concerns (Mixed Impact)
Overview: With 813.8M WCT (81.4% of supply) still locked, investors fear inflationary pressure. The fully diluted valuation ($292M) is 5.4x higher than current market cap ($54.3M), creating valuation disconnect anxiety.
What this means: Long-term holders may stay cautious until clear token unlock schedules or staking utilities emerge. However, WalletConnect’s partnerships (Visa, Crossmint) and 326M+ protocol connections provide fundamental counterweight.
What to look out for: WalletConnect Foundation’s Q3 2025 tokenomics update, expected to address staking mechanics and vesting timelines.
