What is WalletConnect? Latest price analysis and future predictions for WCT Token.

In the fragmented Web3 world, WalletConnect has become the core infrastructure for connecting users with decentralized applications (dApps). This open source protocol establishes an end-to-end encryption channel between crypto asset wallets and dApps through QR code scanning or deep linking, without exposing the Private Key or relying on browser extensions.

As of August 2025, WalletConnect has supported over 240 million connections, covering 38 million independent active wallets and more than 57,000 dApps, becoming a universal connection layer for multi-chain ecosystems such as Ethereum, Solana, and Bitcoin.

Core features of the protocol, addressing the core pain points of Web3

WalletConnect was born in 2018 with the goal of solving the fragmented connection issue in the early Web3 ecosystem. Before its emergence, each dApp needed to develop customized integration solutions for different Wallets, and users often found themselves in compatibility dilemmas.

The protocol reconstructs the connection experience through three major innovations:

• Frictionless cross-device interaction: Desktop users can authorize without installing plugins like MetaMask; they can simply scan the dApp's QR code with their mobile Wallet, and the transaction signing request is directly pushed to the mobile for approval.
• True chain neutrality: Supports over 170 blockchain networks including Ethereum, Solana, Cosmos, and Bitcoin, allowing developers to achieve full chain coverage with just one set of APIs.
• Military-grade security architecture: All communications use end-to-end encryption, and relay nodes cannot decrypt user data; the Private Key is always stored in the local Wallet and is never transmitted.

This design quickly established itself as the default connection standard for leading applications in the industry such as OpenSea, Uniswap, and Trust Wallet, solidifying its key position in the Web3 infrastructure.

Technical Architecture Analysis: Dual Assurance of Security and Efficiency

WalletConnect operates on a decentralized relay network and includes three types of core nodes:

1. Service Nodes: Store encrypted session data and require staking WCT coin to operate.
2. Gateway Nodes: Optimize transmission paths and handle traffic forwarding to achieve low latency.
3. Rendezvous Hash Routing: Dynamically allocate requests to achieve load balancing between nodes.

When the user clicks "Connect Wallet" in the dApp and selects WalletConnect, the protocol establishes a secure session through the following process:

• Session Initialization: dApp generates a QR code or depth link containing encrypted metadata.
• Wallet authorization: Users scan the QR code with their wallet, and the wallet automatically parses the request and prompts for authorization.
• Establishment of an encryption channel: Once approved, a dedicated encryption channel is formed between the Wallet and dApp, and all subsequent requests (such as transaction signatures) are transmitted through this channel.

The key point is: the relay network only transmits ciphertext, and the decryption key exists only at the user's Wallet and the dApp ends. This architecture combines the security features of blockchain with the response efficiency of Web2 systems.

##Native Token WCT, Driving the Network's Decentralization Governance Engine

In 2025, WalletConnect launched its native token WCT (WalletConnect Token), marking the strategic transformation of the protocol from a technical product to a decentralized network. The token is issued on the Optimism blockchain, with a maximum supply of 1 billion coins and a current circulation of approximately 186.2 million (18.62% of the total).

The core value scenario of WCT

• Network Governance: Token holders vote to decide on key proposals such as protocol upgrades and fee structure adjustments.
• Node Staking: Users can stake WCT to run service nodes or gateway nodes, earning rewards based on performance (such as online rate and response speed).
• Ecological Incentives: Developers can receive WCT rewards by developing high-quality Wallets or dApp integrations using SDK tools.
• Potential fee medium: In the future, if the network enables service fees, WCT may become a payment option.

Token Distribution Mechanism

• Foundation Reserve: 27% for ecological funding and security audits
• Core Team: 18.5% (four-year linear unlock)
• Community Airdrop: 18.5% (released in batches)
• Binance Launchpool: 4% (Exchange Public Offering)

This economic model aims to coordinate the incentives between developers, node operators, dApps, and users, promoting the protocol's evolution towards community autonomy.

##Market Performance and Indicator Analysis, Gaming Opportunities under High Volatility

According to Gate market data, as of August 7, 2025, the trading price of WCT is $0.3692, down 0.30% in the past 24 hours. Although it has significantly retraced from $1.072 at the end of May, market indicators show potential reversal signals:

• Technical Indicator Divergence:

  • RSI (14): Current value 72.66, in a neutral to bullish zone (overbought threshold is above 70).
  • 50 Day SMA: Located below the current price, suggesting a potential medium-term upward trend.
  • Market volatility: up to 25.90%, reflecting strong short-term price sensitivity.

• On-chain and emotional data:

  • Fear and Greed Index: 74 (Greed), indicating that traders have an optimistic outlook.
  • 30-day green days: 21/30 (70%), most trading days closed higher.
  • On-chain connection volume: Cumulatively surpassed 15 billion times, with solid fundamental support.

Current price fluctuations are dominated by two main factors: the selling pressure brought about by the early May airdrop unlocks, and the market's speculative expectations regarding the integration progress of new chains such as Solana.

Price Prediction Panorama, Short-term Pressure and Long-term Narrative

Based on the comprehensive technical model and ecological development trajectory, the value curve of WCT may unfold in stages:

Short-term Outlook (Second Half of 2025)

• August: Expected to fluctuate in the range of $0.383 - $0.468, with an average monthly price of $0.4256.
• December: If market sentiment recovers, it may rise to $0.758 - $0.765; if the unlocking pressure intensifies, it may test the support level of $0.35.
• Key level: $0.70 is regarded as a strong support and resistance line, and breaking below it may trigger a swing buying opportunity.

Mid-term Trend (2026-2028)

• Year 2026: Average price $1.57, highest expectation $2.56 (+179.74% ROI), driving factors include:
  • The node staking ratio exceeds 60%, and the circulation remains tight.
  • WalletConnect v3 supports social login and smart account abstraction.
• 2027-2028: Entering a consolidation period, price range $1.09 - $1.60, focus shifts to governance activity and cross-chain bridge integration.

Long-term Vision (2029-2040)

• Year 2029: Predicted peak $3.92, benefiting from the protocol adaptation of Web3 identity systems and DePIN hardware Wallet.
• Year 2030: Average price $2.28, peak $3.20. If the adoption rate surpasses 100 million monthly active Wallets, the market value is expected to enter the top 50 of Crypto Assets.
• 2040: In an optimistic scenario, it will reach $5.42, assuming it becomes the default communication layer for the metaverse and AI agents.

##Future Outlook Regardless of how the price curve of WCT fluctuates, WalletConnect has an irreversible strategic position as the communication layer of Web3. When users log in to Aave again the next morning by scanning the QR code with their mobile phones, the protocol relay nodes may be upgrading due to the WCT governance proposal passed the previous night—at this moment, the technical infrastructure and token economy have completed a closed loop.

In the next five years, with the explosion of demand for account abstraction and inter-chain interoperability, WCT may surpass its positioning as a "connection tool" and evolve into a trust bearer in a decentralized network— and it all starts with the QR code scan completed in milliseconds on your mobile screen.