WalletConnect serves as a core infrastructure for Web3, connecting over 600 wallets and 61,000 dApps through cryptographic protocols, having processed 27.5 billion connections, with a penetration rate exceeding 90%, becoming the de facto standard in the industry. Its recent additions of payment, cross-chain (20+ public chains), and login features significantly enhance the DeFi experience, and the launch of the WCT token (with a circulation rate of only 18.6%) empowers governance and staking.

**Advantages**: Strong technical barriers, significant ecological network effects, and leading multi-chain compatibility.

**Risks**:

1. **Competitive Pressure**: Solutions like MetaMask Snaps threaten its role as a neutral connector;

2. **Token Defects**: Small price difference between private placement and opening price leads to selling pressure, with a 60% flash crash in May exposing liquidity crises;

3. **Revenue Dilemma**: 90% of connections are free, with annual revenue of only $2 million, resulting in a severely overvalued 60 times price-to-sales ratio;

4. **Security Vulnerabilities**: Historical phishing attacks have weakened trust.

In the short term, it needs to accelerate the practical utility of the token (such as fee tiering) to support a market value of $190 million, while in the long term, it must break through the “tool attribute” dilemma, or it may fall into the trap of high valuation and low circulation. #WalletConnect