1. What problem does the project solve?
@WalletConnect WalletConnect Network is an open and decentralized network that allows users to easily connect their crypto wallets with applications globally, especially within the Web3 ecosystem (decentralized internet network). The project addresses the significant issue of the lack of seamless connectivity between personal wallets and decentralized applications, often causing users difficulties in transferring funds or interacting.
For example, you can use WalletConnect to connect your MetaMask wallet to a DeFi application on Ethereum, with just a few clicks, without needing to install additional complex software. Compared to similar projects like MetaMask or other bridges, WalletConnect stands out for supporting over 300 blockchains and over 15 million monthly connections, facilitating the flow of financial transactions worth over $2 trillion in Web3 more smoothly, rather than focusing solely on a single chain. The 240% growth over the past 12 months highlights its important role.
2. Project potential
WalletConnect Token has many strengths such as rapid growth (240% in 12 months) and a core role in the Web3 ecosystem, supporting chains like Solana, Ethereum, and Optimism. The investment opportunity lies in the increasing demand for secure connectivity for DeFi and GameFi, helping the project attract more users.
It stands out against competitors due to its global decentralized network, which does not rely on a single platform, creating a clear competitive advantage. The project is suitable for medium and long-term investors who are interested in Web3 infrastructure and are willing to take risks to benefit from the development of the crypto market.
3. Risks and challenges
The project faces risks such as strong price volatility (24h change only 0.97% but relatively small market cap at $57 million), fierce competition from other wallets and bridges, as well as regulatory risks from the government. Its weaknesses include low ranking and dependence on the development of Web3, which may slow down if the market declines.
Which investors should avoid? Beginners or those who prefer thoughtless investing, as the project requires knowledge of staking and liquidity, as well as the ability to withstand volatility. In the long run, there are high risks if the portfolio is not diversified.
4. Summary
Overall, WalletConnect Token is a promising project with an important role in connecting the Web3 ecosystem, thanks to strong growth and multi-chain support. However, it still carries significant risks from competition and market volatility.
Advice for investors: Do thorough research before participating, only invest money that you can afford to lose, and combine with other assets to diversify. For crypto infrastructure enthusiasts, this may be a good opportunity, but closely monitor volume and market cap to make timely decisions.