#WalletConnect $WCT @WalletConnect

The following is the core analysis of the WCT token (based on the latest data from 2025):

🔍 1. Positioning and Technical Foundation

WCT is the native token of the WalletConnect protocol, which is the core infrastructure connecting cryptocurrency wallets and decentralized applications (dApps). It has supported over 15 million cross-chain connections, is compatible with over 600 wallets and over 40,000 dApps, and has strong ecological application scenarios.

⚙️ 2. Core Functions and Economic Model

Governance and Staking: Token holders can participate in protocol upgrade voting and lock up their tokens to earn rewards (with an APY of up to 85%, but 50% depends on inflation issuance).

Fee Payment: Future relay services (such as wallet-dApp connections) plan to charge WCT fees based on the number of active users (MAU), forming an economic closed loop.

Token Distribution: A total supply of 1 billion tokens, with 18.5% allocated for airdrops, and 30% held by the team and investors (with a 4-year unlocking period), initial circulation is only 18.62%.

📈 3. Market Performance and Challenges

The 24-hour increase once reached 31.65%, but historical volatility has been severe (with a single-day drop of 28%).

Competitive Pressure: Facing challenges from mainstream wallets like MetaMask that integrate cross-chain functions, and the utility of the token is lagging (fee payments not fully activated).

Valuation Controversy: Market capitalization of $120 million, but annual revenue is only $2 million (with a PS of 60 times), high valuation relies on expectations of ecological expansion.

⚠️ 4. Outlook and Risks

If the protocol realizes relay fees, staking deflation, and integration with Web2 giants, market capitalization could exceed $1 billion; conversely, regulatory risks (such as cross-border compliance) and competitive substitutes (such as EIP-3074) may suppress long-term value.

💎 Conclusion: WCT relies on actual ecological demand, but needs to upgrade from "tool attributes" to "value gateway." Short-term high volatility is suitable for risk-tolerant investors, while long-term success depends on technological implementation and the construction of a token economic closed loop.