A tokenized version of Ethereum, the Wrapped Ethereum helps to achieve higher interoperability and also lets users integrate with another blockchain easily. Wrapped Ethereum is instrumental in increasing the use of ETH across various apps.
Why is WITH popular among investors
These wrapped coins provide users with higher flexibility while interoperating with other blockchains. The higher flexibility helps users interact with various blockchains while using specific coins.
Wrapped Ethereum is pegged across Ethereum. Although it maintains its peg across Ethereum it simultaneously allows users to apply the equivalent of ETH to various other blockchains in the crypto ecosystem. This makes ETH users compatible enough to interact with Avalanche or Bitcoin or various other blockchains on the network.
Wrapped Ethereum also wipes out the standard issue of ERC-20 being incompatible with Ethereum. Wrapped coins help to erase this and thus let users maximize the value of Ethereum for various Defi users.
Wrapped Ethereum lets users convert the wrapped coins to Ethereum at a rate of 1:1. The collateral holdings help users to access liquidity to all the stakeholders involved. The primary functionality of Wrapped Ethereum comes in place wherein gas fees on Ethereum show a significant rise while other blockchains might be functioning on a lower gas fee.
What is the current status of WETH
As Wrapped Ethereum is currently pegged at Ethereum the market price functions in tandem with the current market conditions across Ethereum.
The price of ETH is currently trading at a price range of $1481. A total of 1.15 million tokens are currently in circulation in the market.
Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. Please do your own research.
Author - Govind R.