Analysis of the Impact of the $WCT Token Unlocking Plan on the Market

The token unlocking plan for #WalletConnect tokens (WCT) is one of the key factors affecting its market performance. According to the white paper, the total amount of WCT is 1 billion tokens, with an initial circulation of only 18.62% (186.2 million tokens), while the tokens for the team, investors, and core developers are set to unlock over a 4-year period, with the first year locked. This mechanism will release tokens in stages, which may have the following impacts on the market:

1. Short-term liquidity pressure

After 2026, tokens for the team and investors will gradually unlock (accounting for 37% of the total supply). If the market cannot absorb this, it may trigger selling pressure. In similar cases, concentrated token unlocks often lead to a short-term price correction of 20%-30%.

2. Ecological balance and long-term value

Currently, 43% of the circulating supply is locked in staking pools, with an annual yield of 6.5%-8.3%, which partially offsets the unlocking pressure. If a fee-burning mechanism is introduced in the future, a deflationary model may help hedge against selling pressure, stabilizing long-term valuation.

3. Market sentiment differentiation

Investors may react in advance to unlocking expectations, leading to increased price volatility. For example, on the first day of listing in April 2025, private investors' selling triggered a 20% correction, while subsequent ecosystem incentives like Solana airdrops boosted demand. @WalletConnect

Conclusion: The WCT unlocking plan needs to be evaluated in conjunction with ecological development. If the adoption rate of the protocol continues to grow (such as MAU billing being implemented), token demand may be able to absorb selling pressure; conversely, the market may face risks of phased adjustments.