Recently, while researching various infrastructure projects, I suddenly realized a problem: in the Web3 world, whoever controls the connection controls everything.
This reminds me of the early stories of the internet. In the 90s, everyone thought browsers were just tools, with no technical content. What happened? Netscape's IPO marked the beginning of the internet bubble, and Microsoft fought desperately with Netscape for Internet Explorer. They all understood that the browser is the gateway for users into the internet world, and whoever controls the gateway controls the power of traffic distribution.
WalletConnect is currently in such a position. On the surface, it is just a wallet connection protocol, but in reality, it is the "operating system" of the Web3 world. Every interaction between a wallet and a dApp must go through WalletConnect's protocol. This foundational position gives it immense strategic value.
Data doesn't lie. 221 million connections, 4.1 million active independent wallets, 60,000 dApps... these numbers reflect WalletConnect's deep penetration into the entire Web3 ecosystem. More importantly, this penetration is accelerating. As Web3 shifts from speculative hype to real-world applications, the importance of infrastructure will become increasingly prominent.
I am particularly focused on WalletConnect's integration with AI agents. Pedro mentioned in his annual outlook that AI agents will become standard for every on-chain application, providing real-time insights, recommended actions, and automated tasks. I completely agree with this assessment. Imagine when your wallet has an AI assistant that can analyze your transaction history, automatically optimize DeFi strategies, and even predict market trends... this is no longer science fiction, but an imminent reality.
But for AI agents to function, they need to interact seamlessly with blockchain networks. This is the advantage of WalletConnect. It not only provides a connection protocol but also builds an intelligent user experience layer. Smart Sessions is a great example, allowing AI agents to execute complex multi-step operations on behalf of users while ensuring security and user control.
From a tokenomics perspective, the design of WCT reflects deep thinking. 18.5% is airdropped to users and contributors, ensuring community participation; 27% is allocated to the foundation for ecosystem development and partnerships; 36.5% is used for community governance and long-term incentives. This distribution avoids the problem of excessive VC control, allowing WalletConnect to truly become a community-driven project.
The staking mechanism is another highlight. Currently, 106.5 million WCT tokens are staked, with an annual yield of 12-18%, and the top 100 node operators receive an additional 5% reward. This not only ensures network security but also creates demand for tokens. More importantly, stakers gain governance rights to vote on major issues such as network fees and protocol upgrades. This design allows WCT holders to truly become co-owners of the network.
But what I value most is WalletConnect's network effect. In the rapidly changing world of Web3, few projects can establish a real moat. WalletConnect has done it. When 60,000 dApps and 600 wallets rely on your protocol, competitors must convince the entire ecosystem to switch simultaneously to challenge you. This is an almost impossible task.
Coinbase announced support for WCT trading on the Optimism network in August, and immediately after the news was released, the WCT price rose by 11%. This indicates that the market's recognition of WalletConnect is increasing. Traditional crypto institutions are beginning to realize that in the Web3 infrastructure space, WalletConnect has established an unshakeable position.
Of course, there are many challenges. Cross-chain complexity is increasing, and the lack of unified technical standards across chains raises higher demands on WalletConnect's adaptability. Changes in the regulatory environment are also uncertain factors, especially against the backdrop of the U.S. and EU strengthening regulations on DeFi.
But these challenges also represent opportunities. A standardized regulatory environment is conducive to the long-term development of infrastructure projects, and traditional financial institutions are more willing to collaborate with compliant infrastructures. The establishment of the WalletConnect Foundation is precisely to respond to these changes and ensure that the project meets compliance requirements while remaining decentralized.
From an investment timing perspective, I think now is a good time to enter. The WCT price has retraced 80% from its peak, technical indicators show oversold conditions, while fundamentals continue to improve. On-chain governance will launch in Q2 2025, more airdrop plans, and node operator expansion... these catalysts could drive a price rebound.
Moreover, WalletConnect is evolving from a connection tool to a Web3 infrastructure platform. Once this transformation is complete, its value will no longer be just a tool value, but a platform value. Just like AWS is not just a server leasing company but the foundational platform for cloud computing.
We cannot fully predict how Web3 will develop in the future. But one thing is certain: no matter what kind of application, it needs to connect users and blockchain networks. And at this connection layer, WalletConnect has already established an absolute advantage. Investing in WCT is investing in the future of Web3 infrastructure.
