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    WETH

    WETH

    Evaluation Score

    Overall rating on a scale of 0-10

    RiskReturn
    06.010
    Risk Level:
    Medium
    Recommendation:Hold
    Evaluated:May 12, 2025 (v2)

    Crypto Token Health Score Explained

    Our AI-powered health score evaluates on-chain metrics, community support, tokenomics, and more. This helps DeFi investors understand risk, compare tokens, and make informed decisions. Learn how to analyze DeFi tokens' risk and use these insights for DeFi portfolio risk management.

    AI Analysis

    Comprehensive evaluation of the token

    Wrapped Ether (WETH) Overall Evaluation

    WETH is the de facto ERC-20 wrapper for ETH, offering seamless DeFi integration, rock-solid security, and perfectly collateralized 1:1 backing. Its tokenomics and market adoption are among the strongest in DeFi (8/10 tokenomics, 9/10 market), but it suffers from virtually no active development, fragmented community support, and no formal governance structure. While WETH presents minimal technical or custodial risk, its lack of roadmap and central team means enhancements rely solely on ad hoc community efforts. As a utility token, WETH is best viewed as a liquidity and trading tool rather than a speculative growth asset.

    Detailed Analysis by Category

    Development Activity

    Code updates and developer engagement

    RiskReturn
    03.010

    Community Support

    Social media presence and community engagement

    RiskReturn
    04.010

    Tokenomics

    Supply, distribution, and utility

    RiskReturn
    08.010

    Market & Use Case

    Value proposition and competitive landscape

    RiskReturn
    09.010

    Team & Governance

    Team background and project governance

    RiskReturn
    03.010

    Security & Audits

    Security history and audit status

    RiskReturn
    09.010

    About WETH (WETH)

    Wrapped Ether (WETH)

    Symbol: WETH

    Wrapped Ether (WETH) is an ERC-20 token on the Ethereum blockchain that represents Ether (ETH) at a 1:1 ratio. By locking ETH in a smart contract and minting WETH, users can interact with decentralized applications (dApps), decentralized exchanges (DEXs), lending platforms, and other protocols that require ERC-20 compatibility.

    Key Features:

    • ERC-20 Standard: Full compatibility with wallets, DEXs, automated market makers (AMMs), and DeFi tools.
    • 1:1 Backing: Each WETH token is backed by one ETH held in a transparent smart contract.
    • Interoperability: Enables ETH to be used in any ERC-20 environment without conversion hurdles.

    Common Use Cases:

    • Trading and liquidity provision on DEXs like Uniswap and SushiSwap
    • Collateral in lending and borrowing protocols
    • Participation in yield farming and staking pools

    Technical Details:

    • Network: Ethereum Mainnet
    • Token Standard: ERC-20
    • Contract Address: 0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2

    Wrapped Ether (WETH) bridges native ETH with the ERC-20 ecosystem, unlocking broader utility across Ethereum’s decentralized finance landscape.

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