Research Report | In-Depth Analysis of WalletConnect & WCT Market Valuation

Project Overview

WalletConnect is one of the most fundamental yet often overlooked infrastructures in the Web3 ecosystem. Whether connecting to DeFi applications or authorizing signatures within wallets, users interact with it almost daily. Acting as the "USB interface" for on-chain interactions, WalletConnect supports connections between over 600 wallets and more than 40,000 applications, with cumulative connection instances exceeding 275 million. It serves as the true backbone of on-chain user experience (UX).

The newly launched $WCT is more than just a governance token—it is a critical component of WalletConnect’s decentralization roadmap. The current network architecture has laid the groundwork for a communication network composed of service nodes and gateway nodes. The plan is to gradually open node permissions, forming an open, token-incentivized connection protocol ecosystem.

The core design of $WCT empowers connectors: wallets can stake tokens to participate in network governance and reward distribution, while applications can integrate via SDKs to receive standardized support. This creates a multi-party collaborative network centered around the function of “connection.” As wallets and applications increasingly demand privacy, security, and stability, the need for a neutral, highly available, and censorship-resistant communication layer is growing—WalletConnect is positioning itself as the gateway to meet this demand.

Among infrastructure narratives, WalletConnect stands out with real-world usage and adoption. This token launch is not a speculative move, but rather a realization of years of accumulated “connection dividends.”

Project Highlights

De Facto Standard for On-Chain Connectivity with Real Usage
WalletConnect is the de facto standard for Web3 on-chain connectivity, supporting over 600 wallets and 40,000+ DApps, with more than 275 million cumulative connections and 45 million users served. It has become foundational infrastructure for on-chain interactions across DeFi, NFT, GameFi, and other core sectors, with usage far surpassing most other infrastructure projects.

Clear Communication Network Architecture with Progressive Decentralization
The WalletConnect Network is built on a communication layer composed of service nodes, gateway nodes, and relay services. It already supports end-to-end encryption and high availability. The network plans to gradually open node permissions and access, ultimately transitioning to full decentralization with long-term scalability.

Token Model Designed Around “Connection” with Dual Utility in Usage and Governance
$WCT is used for node staking and reward distribution. Wallets and applications that join the network can stake to earn rewards and participate in governance. The token has clear utility and is tied to the participation rights of core network roles, positioning it as the incentive hub of the connection ecosystem.

Ecosystem Neutrality and Strong Cross-Chain Compatibility
WalletConnect naturally supports multi-chain ecosystems and is compatible with major networks such as EVM, Solana, Cosmos, Polkadot, and Bitcoin. With its ecosystem neutrality and open technical architecture, it serves as a critical hub between chains and between applications and wallets, offering vast potential.

Market Valuation Outlook

As a leading on-chain communication protocol, WCT is the invisible infrastructure behind Web3 user interactions and the default connection standard integrated by various wallets. Although the token has not yet launched, based on the valuation levels of similar wallet infrastructure projects, WCT’s potential market pricing is highly promising.

Tokenomics

Total Supply of $WCT: 1,000,000,000

Token Allocation:

WalletConnect Foundation (27%):
Reserved for long-term ecosystem development, including protocol promotion, strategic partnerships, developer support, and governance advancement.

Community Distribution & Airdrops (18.5%):
Incentivizes early users and ecosystem participants to enhance network activity and decentralization. Distribution will cover multiple usage scenarios.

Core Team (18.5%):
Rewards early builders and core contributors with a 4-year linear vesting schedule (including a 1-year cliff) to ensure long-term alignment.

Node & Ecosystem Incentives (17.5%):
Rewards infrastructure participants such as service nodes, gateway nodes, and integrators to ensure network performance and availability.

Early Investors (11.5%):
Allocated to early supporters of the protocol, with vesting schedules to align long-term interests.

Developer Grants (7%):
Funds protocol upgrades, feature development, and new deployments to maintain WalletConnect Network’s technological leadership.

Token Utility:

Medium for Network Service Fees
Future network-level fees (e.g., relay calls, communication services) may be paid in $WCT, subject to holder governance votes.

Ecosystem Incentive Tool
Network participants (e.g., node operators, wallets, applications) can earn $WCT through contributions, creating a positive incentive loop.

Node Staking Credential
Node operation and network role eligibility will be tied to $WCT staking, granting holders revenue-sharing rights and node access.

Governance Voting Rights
$WCT serves as the governance token, enabling holders to propose and vote on protocol parameters, incentive mechanisms, and resource allocation, driving community-led evolution.

Team & Fundraising

Team Information:
WalletConnect is led by a seasoned Web3 architecture and product team, including:

Jess Houlgrave (CEO): A veteran in blockchain and digital asset management, currently leading WalletConnect’s strategic direction and ecosystem expansion.

Pedro Gomes (Founder): The original technical initiator of the WalletConnect protocol, long focused on Web3 UX and wallet interoperability.

Derek Rein (CTO): An expert in distributed systems and on-chain communication architecture, leading the technical development of the node layer and relay services.

The team has deep expertise in on-chain UX standards, communication infrastructure, and decentralized governance, and is the driving force behind WalletConnect’s evolution from a protocol to a full-fledged network.

Fundraising History:

WalletConnect has received backing from top-tier investors across infrastructure, application ecosystems, and trading platforms:

Series A (March 2022): Raised $11 million from 1kx, Coinbase Ventures, Semantic Ventures, Union Square Ventures, Zerion, Buckley Ventures, etc., focused on team expansion and protocol refinement.

Series B (January 2023): Raised $13 million from Union Square Ventures, Shopify, Crypto.com Capital, BitGo, Fenbushi Capital, Figment, Circle Ventures, etc., to support infrastructure upgrades and multi-chain compatibility.

Strategic Round (November 2022): Raised $12.5 million from ConsenSys, Dapper Labs, Gnosis Chain, Snapshot, Uniswap Ventures, HashKey Capital, etc., with wide coverage across wallets, protocols, L2s, and DAOs.

Public Token Sale (February 2024): Raised $10 million through a community token sale to promote token decentralization and network co-building.

Risk Factors

The WalletConnect Network relies on coordinated operation of service and gateway nodes, involving large-scale encrypted communication, relay forwarding, and SDK integration. Service disruptions, insufficient node distribution, or attacks could impact user experience and reduce DApp and wallet integration willingness.

Although WalletConnect is a neutral protocol, its network effect heavily depends on continued support from mainstream wallets and leading applications. If major wallets develop proprietary communication protocols or adopt alternative solutions, WalletConnect’s ecosystem position may be challenged.

Official Links

Website: https://walletconnect.network/
Twitter: https://x.com/walletconnect
Telegram: https://t.me/walletconnect