WCT Market Cap Growth Logic: Demand Driven or Speculation Driven?

The market cap growth logic of WalletConnect Token ($WCT ) exhibits characteristics of both demand and speculation, but its long-term value relies more on the genuine expansion of ecological demand.

1. Demand-Driven Growth Logic

The core value of WCT stems from the foundational infrastructure position of the #WalletConnect protocol in the Web3 ecosystem. This protocol has supported over 40,000 DApps and more than 600 wallets for cross-chain connections, completing a total of 275 million on-chain interactions, forming stable token consumption scenarios (such as MAU billing and staking governance). With the increasing adoption rate of Ethereum Layer 2, the demand for WCT's cross-chain communication may further grow, driving long-term market cap upward.

2. Speculation-Driven Short-Term Volatility

Market sentiment and exchange hype significantly affect WCT prices. For example, after the announcement of the Solana ecosystem airdrop in May 2025, WCT saw a single-day increase of 12%, but subsequently corrected by 20% due to profit-taking. Additionally, liquidity injection and whale control behavior brought about by centralized exchange listings (such as Binance and Upbit) have exacerbated the risk of short-term speculative bubbles.

3. Future Equilibrium Point

If WCT can reduce circulation through staking mechanisms (such as operators locking tokens) and ecological income (such as fee burning), demand-driven growth will dominate market cap growth; conversely, token unlocking and conceptual hype may lead to an excessively high proportion of speculation. Current technical analysis shows that WCT has formed support in the range of $0.6 to $1.2, but a breakout will depend on fundamental improvements.

Conclusion: The market cap growth of $WCT is currently driven by speculative sentiment in the short term, but in the long run, it needs to rely on protocol adoption rates and the maturity of the token economic model. @WalletConnect