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Key Takeaways

WalletConnect makes it easy to connect crypto wallets to decentralized apps using QR codes or deep links, keeping users in control without exposing private keys or relying on browser extensions.

The protocol supports a wide range of blockchain networks, including Ethereum, Solana, Polkadot, Cosmos, and Bitcoin.

The WalletConnect ecosystem has WCT as its utility token, which can be used for staking, governance, and to receive rewards.

What Is WalletConnect?

WalletConnect is an open-source protocol that makes it easy for crypto wallets to connect with decentralized apps (DApps). Instead of relying on browser extensions or copy-pasting wallet addresses, WalletConnect lets you link your wallet to a DApp with a quick QR code scan or deep link. WalletConnect works across many blockchains, and aims to make Web3 more user-friendly and secure.

Originally created to address fragmented and vulnerable DApp-wallet interactions, WalletConnect has grown into a protocol and a network that supports millions of users and thousands of applications.

How WalletConnect Works 

At its foundation, WalletConnect acts as a communication layer that enables wallet applications to interact with DApps without exposing sensitive information, such as private keys. 

The protocol supports encrypted messaging through a session established by scanning a QR code or clicking a deep link. Once connected, users can approve or reject transactions directly from their wallets, which remain in their full control throughout the session.

WalletConnect supports multiple blockchain networks, including Ethereum, Solana, Cosmos, Polkadot, and Bitcoin. 

WalletConnect is built on three key pieces:

Network: This is the system of nodes that pass messages between your wallet and the app you're using. These nodes are run by different groups to keep things decentralized.

SDKs: Developers use WalletConnect SDKs to add the connection feature to their wallets and DApps. The SDKs handle all the technical stuff behind the scenes.

Standards: WalletConnect uses standard rules for how messages are sent and received, which makes it easier for apps and wallets to work together smoothly.

The WCT Token

WalletConnect has its own token called WCT. It is an ERC-20 token with a total supply of 1 billion tokens. WCT was launched on the Optimism network and is used for multiple purposes within the WalletConnect ecosystem:

Governance: WCT holders can help decide how the network evolves, from protocol upgrades to fee structures.

Staking: Users can stake WCT tokens to help secure the network and earn rewards. Staking durations range from one week to two years, with incentives increasing with the length of the commitment.

Performance-based rewards: Node operators and wallet providers are rewarded in WCT based on metrics such as uptime, latency, and the number of successful connections they facilitate.

Future fees: While WalletConnect doesn’t charge fees yet, WCT might be used for transaction fees later on if the community votes for it.

WCT is an ERC-20 token with a total supply of 1 billion tokens.

WCT on Binance Launchpool

On April 10, 2025, Binance announced WCT as the 67th project on the Binance Launchpool. Users who locked their BNB, FDUSD, and USDC during the farming period were eligible to receive WCT rewards. A total of 40 million WCT were allocated to the program, accounting for 4% of the total token supply.

After the farming period, WCT was listed for trading on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

WalletGuide and Certification 

The WalletConnect team also runs WalletGuide, a project that reviews and lists wallets that meet certain quality and security standards. Wallets can earn certification, which makes them more trustworthy in the eyes of users and developers.

Adoption and Growth 

WalletConnect has seen significant adoption since its launch. According to their website, the project has made over 240 million connections to serve more than 38 million unique active wallets. Over 57,000 decentralized applications have integrated the protocol, which illustrates its utility and interoperability within the Web3 space.

Funding and Development 

The WalletConnect Foundation has raised $10 million from four consecutive oversubscribed token sales. The funds will enable the WalletConnect Foundation to expand operations, grow its team and support ecosystem initiatives — benefiting developers, node operators and strategic partners.

Closing Thoughts 

WalletConnect started as a simple way to connect wallets to DApps, but it’s grown into a whole ecosystem with its own token, governance system, and network infrastructure. With support for multiple blockchains and a strong user base, the project is enabling secure and efficient communication across multiple Web3 platforms.

Further Reading

Your Guide to Binance Launchpad and Launchpool 

How to Set Up a Crypto Wallet

What Are Decentralized Applications (DApps)?

Disclaimer: This article is for educational purposes only. This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Tariffs are taxes that governments put on imported goods. The idea is to make foreign products more expensive so that local businesses can compete better. 

In the short term, tariffs often create uncertainty and market volatility. Depending on how they are announced and implemented, investors may get out of riskier assets like stocks and crypto, leading to price drops.

Tariffs on imported mining hardware and semiconductor chips may also increase operational expenses for miners who rely on imported products.

In the medium and long term, there is a possibility of crypto assets, in particular Bitcoin, becoming more attractive as a hedge against inflation and weaker fiat currencies.

What Are Tariffs?

Tariffs are taxes imposed on imported goods and services, often used by governments to protect domestic industries, generate revenue, or retaliate against perceived unfair trade practices.

While they can provide short-term advantages for specific industries, tariffs may also lead to increased prices for consumers and businesses, trade tensions, and economic disruptions.

In a globalized economy, tariffs affect not just the industries directly targeted but also the broader financial markets. They can influence inflation rates, investor sentiment, and supply chains, which in turn can affect currencies, commodities, and cryptocurrencies.

The Role of US Tariffs in Global Trade

The United States has frequently used tariffs as a trade policy tool, particularly under the Trump administration, which imposed sweeping tariffs on goods from China, the European Union, Canada, and other trading partners. The recent "Liberation Day" tariffs of 2025 have intensified global trade disputes, affecting major industries and financial markets.

These policies have already affected industries like manufacturing, technology, and agriculture. But what about crypto? Even though digital currencies don’t work the exact same way as traditional financial assets, they still react to economic changes. Let’s take a closer look at how tariffs can impact the crypto world.

How Tariffs Can Influence the Crypto Market

The impact of tariffs on financial markets and cryptocurrencies can vary greatly depending on how they are calculated, announced, and implemented. There may also be a significant difference between short-term and long-term market reactions.

For example, in the short term, markets may react negatively due to rising levels of fear, uncertainty, and doubt. But that doesn’t necessarily mean investors will continue to be bearish in the long term. It depends, among other things, on how clearly the governments communicate their plans and how well these plans are executed.

1. Investor sentiment and market volatility

Tariffs create economic uncertainty, leading to volatility in financial markets. Cryptocurrencies, particularly Bitcoin, have often been perceived as high-risk assets. Rising trade tensions impact market sentiment, causing investors to move their capital away from crypto assets toward safer options like gold or government bonds.

For example, in 2025, following the announcement of increased US tariffs on Chinese imports, bitcoin’s price experienced a sharp decline. This suggests that, in the short term, tariffs can negatively impact cryptocurrency prices as uncertainty increases and investors become more risk-averse.

2. Inflation, interest rates and crypto prices

Higher tariffs typically lead to increased costs for imported goods. In situations like this, companies usually pass the extra costs onto consumers, making everyday goods more expensive and leading to inflation.

To fight inflation, central banks, including the Federal Reserve, often raise interest rates. Higher interest rates make borrowing money more expensive, which means less cash is flowing into investments—including crypto.

But there’s another side to this. If inflation gets really bad and people lose trust in traditional currencies, they might turn to crypto, especially Bitcoin, as a way to protect their money. In countries with hyperinflation and weaker economies, this has already happened.

The long-term effect depends on how aggressively central banks respond to tariff-induced inflation and whether crypto investors view bitcoin as a good store of value similar to gold.

3. Crypto mining costs could rise

Many cryptocurrency mining operations rely on imported hardware, particularly from China, where a significant portion of ASIC miners and GPUs are produced. 

If the US places higher tariffs on Chinese tech products, it could drive up the cost of mining hardware, making it more expensive to run a mining operation. This could also encourage miners to relocate to regions with lower operational costs and fewer trade restrictions.

In addition, if tariffs target semiconductor chips (which are crucial for mining rigs), the impact could be even bigger. 

4. Currency devaluation and crypto adoption

In certain cases, trade wars and high tariffs can weaken national currencies, making cryptocurrencies a more appealing alternative. In countries experiencing rapid currency devaluation, citizens often turn to bitcoin and stablecoins to preserve wealth.

For instance, when Argentina and Turkey faced economic instability, their crypto adoption rates surged as residents sought alternatives to depreciating local currencies. If US tariffs lead to similar economic instability in affected countries, crypto adoption could rise in the long term.

Is Bitcoin a Safe Haven or Just Another Risky Asset?

Some investors treat it like a "safe haven" asset—especially the early adopters. Others see it as a speculative investment that’s as risky as stocks.

Historically, Bitcoin has followed stock market trends during periods of economic stress. When the stock market drops due to tariffs, Bitcoin often does too. But if the global economy worsens, Bitcoin could take on more of a "gold-like" role, attracting investors looking for a hedge against inflation and currency devaluation.

The long-term impact of tariffs on bitcoin depends on whether it is seen primarily as a speculative asset or as a hedge against macroeconomic risks.

Closing Thoughts

While tariffs mainly target goods and services, their effects go far beyond that. They can shake up investor confidence, drive up mining costs, and even push more people toward digital assets. Trade policies can certainly influence how people invest, where companies do business, and even what kinds of currency people trust. 

In the short term, increased uncertainty can lead to price drops as investors move away from risky assets. In the medium and long term, there is a possibility of Bitcoin becoming more attractive as a “store of value” asset.

Further Reading

Is Bitcoin a Store of Value?

What Is Monetary Policy?

What Is the Crypto Fear and Greed Index?

This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Tariffs are taxes that governments put on imported goods. The idea is to make foreign products more expensive so that local businesses can compete better. 

In the short term, tariffs often create uncertainty and market volatility. Depending on how they are announced and implemented, investors may get out of riskier assets like stocks and crypto, leading to price drops.

Tariffs on imported mining hardware and semiconductor chips may also increase operational expenses for miners who rely on imported products.

In the medium and long term, there is a possibility of crypto assets, in particular Bitcoin, becoming more attractive as a hedge against inflation and weaker fiat currencies.

What Are Tariffs?

Tariffs are taxes imposed on imported goods and services, often used by governments to protect domestic industries, generate revenue, or retaliate against perceived unfair trade practices.

While they can provide short-term advantages for specific industries, tariffs may also lead to increased prices for consumers and businesses, trade tensions, and economic disruptions.

In a globalized economy, tariffs affect not just the industries directly targeted but also the broader financial markets. They can influence inflation rates, investor sentiment, and supply chains, which in turn can affect currencies, commodities, and cryptocurrencies.

The Role of US Tariffs in Global Trade

The United States has frequently used tariffs as a trade policy tool, particularly under the Trump administration, which imposed sweeping tariffs on goods from China, the European Union, Canada, and other trading partners. The recent "Liberation Day" tariffs of 2025 have intensified global trade disputes, affecting major industries and financial markets.

These policies have already affected industries like manufacturing, technology, and agriculture. But what about crypto? Even though digital currencies don’t work the exact same way as traditional financial assets, they still react to economic changes. Let’s take a closer look at how tariffs can impact the crypto world.

How Tariffs Can Influence the Crypto Market

The impact of tariffs on financial markets and cryptocurrencies can vary greatly depending on how they are calculated, announced, and implemented. There may also be a significant difference between short-term and long-term market reactions.

For example, in the short term, markets may react negatively due to rising levels of fear, uncertainty, and doubt. But that doesn’t necessarily mean investors will continue to be bearish in the long term. It depends, among other things, on how clearly the governments communicate their plans and how well these plans are executed.

1. Investor sentiment and market volatility

Tariffs create economic uncertainty, leading to volatility in financial markets. Cryptocurrencies, particularly Bitcoin, have often been perceived as high-risk assets. Rising trade tensions impact market sentiment, causing investors to move their capital away from crypto assets toward safer options like gold or government bonds.

For example, in 2025, following the announcement of increased US tariffs on Chinese imports, bitcoin’s price experienced a sharp decline. This suggests that, in the short term, tariffs can negatively impact cryptocurrency prices as uncertainty increases and investors become more risk-averse.

2. Inflation, interest rates and crypto prices

Higher tariffs typically lead to increased costs for imported goods. In situations like this, companies usually pass the extra costs onto consumers, making everyday goods more expensive and leading to inflation.

To fight inflation, central banks, including the Federal Reserve, often raise interest rates. Higher interest rates make borrowing money more expensive, which means less cash is flowing into investments—including crypto.

But there’s another side to this. If inflation gets really bad and people lose trust in traditional currencies, they might turn to crypto, especially Bitcoin, as a way to protect their money. In countries with hyperinflation and weaker economies, this has already happened.

The long-term effect depends on how aggressively central banks respond to tariff-induced inflation and whether crypto investors view bitcoin as a good store of value similar to gold.

3. Crypto mining costs could rise

Many cryptocurrency mining operations rely on imported hardware, particularly from China, where a significant portion of ASIC miners and GPUs are produced. 

If the US places higher tariffs on Chinese tech products, it could drive up the cost of mining hardware, making it more expensive to run a mining operation. This could also encourage miners to relocate to regions with lower operational costs and fewer trade restrictions.

In addition, if tariffs target semiconductor chips (which are crucial for mining rigs), the impact could be even bigger. 

4. Currency devaluation and crypto adoption

In certain cases, trade wars and high tariffs can weaken national currencies, making cryptocurrencies a more appealing alternative. In countries experiencing rapid currency devaluation, citizens often turn to bitcoin and stablecoins to preserve wealth.

For instance, when Argentina and Turkey faced economic instability, their crypto adoption rates surged as residents sought alternatives to depreciating local currencies. If US tariffs lead to similar economic instability in affected countries, crypto adoption could rise in the long term.

Is Bitcoin a Safe Haven or Just Another Risky Asset?

Some investors treat it like a "safe haven" asset—especially the early adopters. Others see it as a speculative investment that’s as risky as stocks.

Historically, Bitcoin has followed stock market trends during periods of economic stress. When the stock market drops due to tariffs, Bitcoin often does too. But if the global economy worsens, Bitcoin could take on more of a "gold-like" role, attracting investors looking for a hedge against inflation and currency devaluation.

The long-term impact of tariffs on bitcoin depends on whether it is seen primarily as a speculative asset or as a hedge against macroeconomic risks.

Closing Thoughts

While tariffs mainly target goods and services, their effects go far beyond that. They can shake up investor confidence, drive up mining costs, and even push more people toward digital assets. Trade policies can certainly influence how people invest, where companies do business, and even what kinds of currency people trust. 

In the short term, increased uncertainty can lead to price drops as investors move away from risky assets. In the medium and long term, there is a possibility of Bitcoin becoming more attractive as a “store of value” asset.

Further Reading

Is Bitcoin a Store of Value?

What Is Monetary Policy?

What Is the Crypto Fear and Greed Index?

This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Tariffs are taxes that governments put on imported goods. The idea is to make foreign products more expensive so that local businesses can compete better. 

In the short term, tariffs often create uncertainty and market volatility. Depending on how they are announced and implemented, investors may get out of riskier assets like stocks and crypto, leading to price drops.

Tariffs on imported mining hardware and semiconductor chips may also increase operational expenses for miners who rely on imported products.

In the medium and long term, there is a possibility of crypto assets, in particular Bitcoin, becoming more attractive as a hedge against inflation and weaker fiat currencies.

What Are Tariffs?

Tariffs are taxes imposed on imported goods and services, often used by governments to protect domestic industries, generate revenue, or retaliate against perceived unfair trade practices.

While they can provide short-term advantages for specific industries, tariffs may also lead to increased prices for consumers and businesses, trade tensions, and economic disruptions.

In a globalized economy, tariffs affect not just the industries directly targeted but also the broader financial markets. They can influence inflation rates, investor sentiment, and supply chains, which in turn can affect currencies, commodities, and cryptocurrencies.

The Role of US Tariffs in Global Trade

The United States has frequently used tariffs as a trade policy tool, particularly under the Trump administration, which imposed sweeping tariffs on goods from China, the European Union, Canada, and other trading partners. The recent "Liberation Day" tariffs of 2025 have intensified global trade disputes, affecting major industries and financial markets.

These policies have already affected industries like manufacturing, technology, and agriculture. But what about crypto? Even though digital currencies don’t work the exact same way as traditional financial assets, they still react to economic changes. Let’s take a closer look at how tariffs can impact the crypto world.

How Tariffs Can Influence the Crypto Market

The impact of tariffs on financial markets and cryptocurrencies can vary greatly depending on how they are calculated, announced, and implemented. There may also be a significant difference between short-term and long-term market reactions.

For example, in the short term, markets may react negatively due to rising levels of fear, uncertainty, and doubt. But that doesn’t necessarily mean investors will continue to be bearish in the long term. It depends, among other things, on how clearly the governments communicate their plans and how well these plans are executed.

1. Investor sentiment and market volatility

Tariffs create economic uncertainty, leading to volatility in financial markets. Cryptocurrencies, particularly Bitcoin, have often been perceived as high-risk assets. Rising trade tensions impact market sentiment, causing investors to move their capital away from crypto assets toward safer options like gold or government bonds.

For example, in 2025, following the announcement of increased US tariffs on Chinese imports, bitcoin’s price experienced a sharp decline. This suggests that, in the short term, tariffs can negatively impact cryptocurrency prices as uncertainty increases and investors become more risk-averse.

2. Inflation, interest rates and crypto prices

Higher tariffs typically lead to increased costs for imported goods. In situations like this, companies usually pass the extra costs onto consumers, making everyday goods more expensive and leading to inflation.

To fight inflation, central banks, including the Federal Reserve, often raise interest rates. Higher interest rates make borrowing money more expensive, which means less cash is flowing into investments—including crypto.

But there’s another side to this. If inflation gets really bad and people lose trust in traditional currencies, they might turn to crypto, especially Bitcoin, as a way to protect their money. In countries with hyperinflation and weaker economies, this has already happened.

The long-term effect depends on how aggressively central banks respond to tariff-induced inflation and whether crypto investors view bitcoin as a good store of value similar to gold.

3. Crypto mining costs could rise

Many cryptocurrency mining operations rely on imported hardware, particularly from China, where a significant portion of ASIC miners and GPUs are produced. 

If the US places higher tariffs on Chinese tech products, it could drive up the cost of mining hardware, making it more expensive to run a mining operation. This could also encourage miners to relocate to regions with lower operational costs and fewer trade restrictions.

In addition, if tariffs target semiconductor chips (which are crucial for mining rigs), the impact could be even bigger. 

4. Currency devaluation and crypto adoption

In certain cases, trade wars and high tariffs can weaken national currencies, making cryptocurrencies a more appealing alternative. In countries experiencing rapid currency devaluation, citizens often turn to bitcoin and stablecoins to preserve wealth.

For instance, when Argentina and Turkey faced economic instability, their crypto adoption rates surged as residents sought alternatives to depreciating local currencies. If US tariffs lead to similar economic instability in affected countries, crypto adoption could rise in the long term.

Is Bitcoin a Safe Haven or Just Another Risky Asset?

Some investors treat it like a "safe haven" asset—especially the early adopters. Others see it as a speculative investment that’s as risky as stocks.

Historically, Bitcoin has followed stock market trends during periods of economic stress. When the stock market drops due to tariffs, Bitcoin often does too. But if the global economy worsens, Bitcoin could take on more of a "gold-like" role, attracting investors looking for a hedge against inflation and currency devaluation.

The long-term impact of tariffs on bitcoin depends on whether it is seen primarily as a speculative asset or as a hedge against macroeconomic risks.

Closing Thoughts

While tariffs mainly target goods and services, their effects go far beyond that. They can shake up investor confidence, drive up mining costs, and even push more people toward digital assets. Trade policies can certainly influence how people invest, where companies do business, and even what kinds of currency people trust. 

In the short term, increased uncertainty can lead to price drops as investors move away from risky assets. In the medium and long term, there is a possibility of Bitcoin becoming more attractive as a “store of value” asset.

Further Reading

Is Bitcoin a Store of Value?

What Is Monetary Policy?

What Is the Crypto Fear and Greed Index?

This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.