At the time of writing, WETH has a circulating supply of 4.32 million WETH at a price of $1,518 for a market cap of $6.56 billion. Besides the canonical implementation of WETH(opens in a new tab) described on this page, there are other variants in the wild. These may be custom tokens created by app developers or versions issued on other blockchains, and may behave differently or have different security properties. Always double-check the token information to know which WETH implementation you’re interacting with. You can redeem any amount of WETH with the WETH smart contract, and you khloe kardashian shows off her post will receive the same amount in ETH. The WETH deposited is then burned and taken out of the circulating supply of WETH.

This means that the supply of wETH will always be less than or equal to the amount of ETH locked in the contract. As a result, the total value locked in WETH smart contracts has also grown significantly, and its bullish trend began in early 2020 and has continued throughout the years. WETH is created when ETH is sent to a smart contract on the Ethereum akon reveals new plans for his 2000 network. Once the ETH is deposited into the smart contract, it is minted as WETH. The smart contract keeps track of the amount of ETH that has been deposited and minted.

While the technical details regarding the intrinsic differences between ETH and WETH are complex, the concept is intuitive.

Crypto Price

MoonPay allows you to swap crypto cross-chain with competitive rates, directly from your non-custodial wallet. As ETH does not conform to the ERC-20 standard, it cannot be used directly with these protocols. By wrapping ETH, however, it behaves like an ERC-20 token, which allows you to use it with those protocols.

WETH priceWETH

Wrapping involves sending Ethereum to a smart contract that provides WETH in return. Your ETH, which will be locked up in the smart contract as discussed above, will be visible on the blockchain in this contract, while WETH will be credited back to your crypto wallet in return. The live WETH price today is $2,441.06 USD with a 24-hour trading volume of $703,544,779 USD. The current CoinMarketCap ranking is #9711, with a live market cap of $8,239,359,469 USD. WETH, an abbreviation for Wrapped Ethereum, represents a significant innovation in the Ethereum ecosystem. It was created to address the interoperability issues between Ethereum (ETH) and ERC-20 tokens.

What are the WETH contracts on other networks?მეტი

This functionality is crucial for DeFi protocols like Aave and Compound, where collateralization is a fundamental aspect of borrowing and lending operations. Unfortunately, there are a few potential disadvantages of using cryptocurrency bridges. For example, the bridge could be hacked, resulting in the loss of your tokens. Additionally, there could be a problem with the bridge’s software that results in users not being able to access their crypto.

The goal of wrapped tokens is to make it easier for people to use any cryptocurrency across multiple blockchains. Currently, each blockchain has specific coding protocols, making it impossible to interpret data from other chains. Like how iOS apps won’t work on an Android device, blockchains like Bitcoin and Ethereum don’t know how to communicate with each other. Wrapping helps create a copy of an original cryptocurrency with another blockchain’s coding standards. The objective of all wrapped tokens is to merely add an additional layer of interoperability between various networks.

1. The widespread availability of WETH on exchanges has contributed to its liquidity and usability, making it a preferred choice for many traders and investors.
2. The smart contract keeps track of the amount of ETH that has been deposited and minted.
3. The Ethereum blockchain, which underpins WETH, is a decentralized platform that supports smart contracts—self-executing contracts with the terms of the agreement directly written into code.
4. He attended the University of California – San Diego, where he studied Engineering.

Aave is a decentralized lending platform that allows users to lend and borrow a variety of cryptocurrencies. The largest fraction of crypto users (around 31%) are between 18-29, an age demographic that typically includes college students and new graduates. It’s impractical for these users to spend hundreds of dollars on transaction fees.

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The difference in these prices (after the trading fees) will be your net profit. In the case of liquidity pools and crypto exchanges, the way wETH’s price is pegged to ETH’s price is similar to collateralized stablecoins – arbitrage opportunity. Since wETH can also be used across other Ethereum-compatible chains and Layer-2 solutions, users can bypass the high gas fees and just learn more about the space by playing around with microtransactions. WETH can be converted back into ETH at any time by sending it back the smart contract. When WETH is unwrapped, the smart contract sends an equal amount of ETH back to the user.

WETH (Wrapped Ethereum) is a tokenized version of Ethereum (ETH) that facilitates seamless transactions on the Ethereum blockchain. Unlike ETH, which is the native currency of the Ethereum network, WETH is an ERC-20 token, making it compatible with decentralized applications (dApps) and smart contracts that require ERC-20 tokens. Like wBTC, wETH has a different set of coding standards, making it easier to use wETH on blockchains such as Avalanche or how does bitcoin mining work 2021 Polygon. Interestingly, it’s most popular to use wETH tokens within Ethereum’s ecosystem. For context, smart contracts are blockchain programs that automatically execute their preprogrammed commands and are an essential feature in dApp design. So while people use ETH to pay transaction fees and stake on the Ethereum blockchain, it’s impossible to use regular ETH to interact with Ethereum’s smart contract code on dApps like Aave, OpenSea, and Uniswap.