Recently, the WalletConnect Token (WCT) project has made significant progress in infrastructure usage, ecological expansion, and token issuance, but also faces short-term market volatility risks. The following analysis will unfold from four dimensions: core dynamics, favorable factors, potential risks, and observation points.
1. Core dynamics: Ecological expansion and accelerated token issuance.
Surge in infrastructure usage.
In Q1-Q2 2025, the number of WalletConnect connections will exceed 250 million to 300 million, with independent wallets exceeding 40 million and integrated applications reaching over 60,000.
This data reflects the actual adoption rate of its blockchain 'pipeline' infrastructure, laying a traffic foundation for the long-term development of the ecosystem.
Multi-chain governance token WCT issuance.
WCT distributes 5 million tokens through the Solana chain (claims/airdrops) and collaborates with the Wormhole native cross-chain solution, aiming to become a multi-chain governance and incentive token. The claim activity deadline is August 14, 2025, and participation rates vary by wallet/platform (e.g., partners like Phantom, Solflare).
Decentralization and open-source progress.
WalletConnect Network has announced an open-source plan to meet the transferability conditions of WCT and expand third-party node operations, promoting the on-chain governance roadmap.
Corporate operation and financing.
The project has been renamed to “Reown” (formerly WalletConnect) and completed a round of financing, aiming to promote the productization process of SDK, AppKit/WalletKit, and enterprise-level landing.
2. Favorable factors: strengthened ecological position and long-term value support.
Monopolistic position of infrastructure.
WalletConnect, as the core tool of the UX/connection layer, has a large number of connections and integrated applications that prove its ecological discourse power, and it can sustainably enjoy traffic dividends in the future.
Multi-chain cooperation expansion.
WCT collaborates with Solana and multiple wallets/platforms, converting user bases into governance/incentive participation, enhancing ecological stickiness.
Clear B2B revenue path.
Corporate operation and financing support will accelerate the commercialization of SDK and enterprise products, providing guarantees for long-term revenue.
3. Potential risks: short-term volatility and governance uncertainty.
Selling pressure triggered by airdrops/claims.
Multiple rounds of token distribution and claim windows will bring a large number of tradable tokens in the short term, potentially causing high price volatility and selling pressure.
For example, related volatility reports have recently emerged in the market.
Speculative and sentiment-driven.
Token events (airdrops, on-chain, claim deadlines) can be amplified by speculators, leading to a disconnection between price and usage rate.
Decentralized governance is slow to implement.
Open-source and third-party node addition is just the beginning; real governance mechanisms, incentive measures, and anti-manipulation mechanisms need time to validate.
Regulatory compliance pressure.
As the SDK is adopted by traditional payment or financial institutions, regulatory scrutiny may increase, requiring attention to compliance progress.
4. Key observation points: short-term volatility and long-term value signals.
Short term (within weeks)
Claim progress and selling pressure: Monitor the claim deadlines and participation rates of WCT on various chains, especially on the Solana side (deadline August 14), to see if there is large-scale selling after the claim peak.
Liquidity changes: the trading volume and price stability of WCT on exchanges/DEX, caution against selling pressure when volume increases with price drops.
Medium to long term (months and beyond)
Number of decentralized nodes and governance activity: verifying whether community autonomy is achieved.
Enterprise landing case: Is there deep integration with large enterprises or payment vendors in AppKit/WalletKit?
Growth in actual use cases: Is the on-chain usage rate of WCT in fees, rewards, and governance improving (holding alone ≠ real application)?
Conclusion: Ecological expansion is favorable, cautious in the short term, focus on technological implementation in the long term.
WCT shows strong performance in infrastructure usage and ecological expansion, but short-term market performance is easily driven by token claims/airdrops and liquidity events, posing price volatility risks. Long-term investors should focus on technological adoption rates and the implementation of governance mechanisms, while short-term traders need to closely monitor claim windows and liquidity changes. (Source: blockworks.co, businesswire.com)