chain: News of WETH (WETH) - June 2024 Price Update - 32.26% Breakout Crypto News and Analysis
Student
Explore the Core.
WETH is the tokenized/packaged form of ETH that you use to pay for items when you interact with Ethereum dApps. WETH follows the ERC-20 token standards, enabling it to achieve interoperability with other ERC-20 tokens. This offers more utility to holders as they can use it across networks and dApps. You can stake, yield farm, lend, and provide liquidity to various liquidity pools with WETH. Also, unlike ETH, which doesn’t conform to its own ERC-20 standard and thus has lower interoperability as it can’t be used on other chains besides Ethereum, WETH can be used on cheaper and high throughput alternatives like Binance, Polygon, Solana, and Cardano.
GLORIA OLUWAFERANMITo God be the Glory
Spot the Main Event:
Wrapped tokens, like WETH, WBTC, and others, allow tokens to live on multiple chains. For instance, if an investor wants to hold Ether but use it on the Avalanche chain, they would need Wrapped Ethereum to have price exposure to ETH, while not using the Ethereum chain. Doing that increases blockchains' liquidity and capital efficiency because it allows investors to wrap assets and deploy them on other chains
This is not a financial advice. Please do your own research and consider the risks of trading cryptocurrencies.