WalletConnect (now rebranded as Reown) is a core connectivity layer protocol within the Web3 ecosystem. Since its inception in 2018, it has evolved into critical infrastructure supporting over 40,000 dApps and 600+ wallets, facilitating more than 2.2 billion connections cumulatively. The project has expanded from its initial QR code scanning protocol to a comprehensive user experience layer encompassing AppKit and WalletKit, aiming to serve as a "digital passport" connecting users to the Web3 world.

Ecological Development
As of April 2025, Reown has recorded over 220 million connections and 35 million+ unique wallets using the protocol. Between 2023 and 2024, connection volume grew by approximately 340%. In January 2025, the project secured $13 million in Series B funding.

Token Mechanism
The governance token WCT has a total supply of 1 billion tokens, primarily used for network governance, staking incentives, and ecosystem grants. The current circulating supply is around 18.6%, with the remainder being released gradually according to a multi-year plan. A significant unlock event in November 2025 will double the circulating supply.

Market Performance
The circulating market cap is approximately $60 million, with a fully diluted valuation (FDV) of $300 million. While the valuation appears relatively full, the token lacks sustained revenue support. Liquidity performance is strong, with deep order books on major exchanges like Binance. The presence of a KRW trading pair on Upbit also makes it easier to attract retail liquidity.

Risks and Opportunities
Key risks include limited token utility and potential price volatility due to large unlocks. Opportunities lie in the protocol’s extensive coverage and high market exposure. If subsequent product tooling and token utility advancements proceed smoothly, the FDV could potentially reach $800 million.
Overall, WCT is suitable for mid- to short-term attention but not ideal for large-position allocations.

Summary
In the Web3 landscape, connectivity layer protocols—often underestimated yet indispensable—serve as critical bridges between users and decentralized applications. Since its launch in 2018, WalletConnect (now rebranded as Reown) has quietly grown into core infrastructure supporting 40,000+ dApps and 600+ wallets. This article analyzes the project, which has facilitated over 2.2 billion connections, from four perspectives: ecological development, token mechanics, market performance, and future potential, along with the investment logic and risk boundaries of its governance token WCT.

WalletConnect began in 2018 as an open standard and network for establishing secure connections between dApps and wallets. Over the years, it has expanded from a simple QR code scanning protocol to an ecosystem integrating hundreds of wallets and applications. Users can perform various operations—such as message signing, transactions, and logins—through a single connection. In September 2024, the team announced the rebranding of WalletConnect Inc. to Reown, emphasizing its goal of building a comprehensive user experience layer (AppKit and WalletKit) for Web3. Reown remains a core contributor to the open-source WalletConnect Network, developing SDKs and introducing community governance and incentive mechanisms.

At its core, WCT is a tool that enables users to authorize, manage, and transact with Web3 entry points across different platforms/websites from their wallets. It currently offers broad coverage and helps mitigate security risks on the device side.

Since 2018, the network has provided integration services for 40,000+ dApps and 600+ wallets, creating over 150 million connections cumulatively. Even after the rebranding, it continues to maintain the WalletConnect Network.
The 2024 annual report revealed that WalletConnect’s network connections grew by approximately 340% between 2023 and 2024, from 41 million to 179 million. Total connections for the year exceeded 221 million, with about 4.1 million unique active wallets.
According to an Everstake article, as of April 2025, Reown has recorded 220 million+ connections and 35 million+ unique wallets using the protocol. It also completed a $13 million Series B funding round in January 2025.
Overall, WCT’s protocol coverage is its most important moat, though it has not yet generated sustained business revenue. While there is significant growth potential and narrative appeal, the official focus remains on account management, with low activity maintenance.

Since its launch, WCT has consistently traded at low levels, experiencing minor fluctuations in line with broader market trends.
The current circulating market cap is $60 million, with an FDV of $300 million. From a business fundamentals perspective, the valuation appears relatively full. However, from a market/liquidity standpoint, there seems to be strong market maker (MM) interest.

Apart from its low circulation rate, WCT’s key risks include a token unlock event in November 2025 that will double the circulating supply, as well as limited utility and support. A rapid increase in supply could lead to significant volatility.
The WCT team appears aware of the token’s lack of value support and is advancing efforts in product tooling and token utility enhancement. These initiatives aim to expand user coverage and usage scenarios.

Positioning and Utility
WCT (Connect Token) is the governance and incentive token of the WalletConnect Network, designed to decentralize and sustain the network’s operations. According to Everstake, WCT serves three primary functions within the Reown ecosystem:

• Governance: Token holders can vote on network upgrades, ecosystem fund allocations, and other critical matters. On-chain governance will be introduced in 2025, enabling direct decision-making by holders.

• Staking and Rewards: Users can stake WCT to earn rewards. Staking also incentivizes node operators, enhancing network security.

• Ecosystem Grants: A portion of WCT is allocated to an ecosystem fund, providing grants to developers and creators building on the Reown network.

Supply and Distribution
WCT has a total supply of 1 billion tokens. Cryptorank data indicates the following allocation:

• Foundation Treasury: 20.05%

• Team: 18.50%

• Reward Pool: 17.50%

• Seasonal Airdrops: 13.50%

• Others (Partners, Strategic Reserve, etc.): 30.45%

• Public Sale: 4.00%
  As of May 2025, the circulating supply is approximately 186.2 million WCT (~18.6%), with the remainder being unlocked gradually over multiple years.

Governance and Participation Barriers
The initial airdrop phase primarily targeted users, developers, and partners participating in the WalletConnect Network. Token holders will eventually participate in governance via Snapshot or on-chain voting. Token holding and staking may be linked to privileges such as node operation eligibility and airdrop rewards.

WCT enjoys relatively strong recognition among retail investors. While this has not directly translated into revenue, the exposure helps attract and build buying interest. The token is listed on top-tier exchanges, including a KRW trading pair on Upbit, making it easier to gather liquidity among Korean retail traders.

From an order book perspective, WCT’s liquidity far exceeds expectations for its category. Liquidity is robust, with a ±2% depth of over $1 million for the USDT trading pair on Binance alone. Daily trading volumes are also solid, indicating relatively high maintenance costs.