WETH

Halal Rating :
Comfortable
Last Price $3,261 Last updated:
Rank 10515
1D Change -4.62 %
Market Cap $11.01b
Circulating supply 3,375,318
Maximum supply None
Crypto Overview Crypto Impact

Crypto Overview

Categories
  • Ethereum Ecosystem
  • Waves Ecosystem
  • Solana Ecosystem
  • Wrapped Tokens
  • Polygon Ecosystem
  • Fantom Ecosystem
  • Near Protocol Ecosystem
  • Arbitrum Ecosystem
  • Celo Ecosystem
  • IoTeX Ecosystem
  • Zilliqa Ecosystem
  • Harmony Ecosystem
  • Moonriver Ecosystem
  • Oasis Ecosystem
  • Moonbeam Ecosystem
  • Everscale Ecosystem
  • Ethereum PoW Ecosystem
  • Aptos Ecosystem
  • Optimism Ecosystem
  • Canto Ecosystem
  • zkSync Era Ecosystem
  • Base Ecosystem
  • Linea Ecosystem
  • Sei Ecosystem
  • Blast Ecosystem
  • Rehypothecated Crypto
  • Gnosis Chain Ecosystem
  • Conflux Ecosystem
  • KCC Ecosystem
  • KardiaChain Ecosystem
  • Telos Ecosystem
  • Ronin Ecosystem
  • Boba Network Ecosystem
  • Hoo Smart Chain Ecosystem
  • Aurora Ecosystem
  • Metis Andromeda Ecosystem
  • Meter Ecosystem
  • Fuse Ecosystem
  • Elastos Ecosystem
  • Milkomeda Ecosystem
  • Wemix Ecosystem
  • Polygon zkEVM Ecosystem
  • Mantle Ecosystem
  • Scroll Ecosystem
  • X Layer Ecosystem
  • Mode Ecosystem
  • Taiko Ecosystem
  • World Chain Mainnet Ecosystem

Purpose and Utility

WETH (Wrapped Ether) is an ERC-20 token that represents ETH at a 1:1 ratio on the Ethereum blockchain. Its primary purpose is to enable ETH to be used in DeFi protocols and smart contracts that require ERC-20 token compatibility. When users deposit ETH, they receive an equal amount of WETH, which can be unwrapped back to ETH at any time.

Business Model

The business model is straightforward and transparent: WETH acts as a bridge between native ETH and ERC-20 compatible applications. Each WETH token is fully backed by ETH held in smart contracts. The wrapping and unwrapping process is automated through smart contracts with no intermediaries.

Real-World Adoption

WETH has achieved widespread adoption across the Ethereum ecosystem. It is extensively used in decentralized exchanges (DEXs), lending platforms, and various DeFi applications. As of 2024, WETH is one of the most widely used tokens in the DeFi ecosystem, with significant daily trading volume and integration across major platforms.

Platform Development

The WETH smart contract is well-audited and has remained stable since its inception. While it doesn't require ongoing development due to its simple purpose, the contract continues to function as intended with high reliability.

Token Distribution

WETH has no pre-mine or initial distribution. New WETH tokens are only created when users deposit ETH, maintaining a perfect 1:1 ratio. There are no founders or team allocations, as it's purely a utility token backed by deposited ETH.

Crypto Impact

To assign a comfort level investing in WETH from a halal perspective we need to determine whether it has a net positive or negative impact.

Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to WETH.

If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.

We will review your contribution for accuracy before publication.

Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.

You only have one vote per asset so use it wisely.

You can change your vote if you change your mind.

Contribute