Wormhole's W Rallies 13% Weekly Amid Institutional Partnerships and Governance Upgrades

The price of W, the native token of the Wormhole blockchain interoperability protocol, has experienced a 13% weekly rally, reaching a high of $0.09216 on August 10. Although the token has since seen a slight pullback, the 24-hour trading volume has dropped by 5.5% to $48.5 million, signaling a potential slowdown in the recent momentum [1]. Technical indicators suggest a mixed market sentiment, with the Relative Strength Index (RSI) retreating to 49.4 from overbought levels. The MACD histogram remains slightly positive, while key support is identified at $0.085, which aligns with the 50-day EMA at $0.0818. A break below this level could trigger stop-loss selling and bearish pressure. Traders are also watching the 4-hour VWAP at $0.0927 as a potential confirmation point for a breakout [1].

Wormhole’s price action has been influenced by institutional partnerships, which have strengthened its position in the tokenized finance space. Notable collaborations include those with BlackRock’s BUIDL fund, Ripple’s XRPL, Apollo, and Securitize. These alliances are expected to support the upcoming MultiGov multichain governance system and Settlement protocol upgrades, which aim to increase cross-chain transaction volumes by tenfold by 2026. BlackRock’s expansion of its BUIDL fund to Solana via Wormhole in July coincided with a 12.7% price surge in W [1].

However, market risks and competition remain significant concerns. Wormhole operates primarily within the Base Network, which faced a 19-minute block production halt on August 5 due to a spike in token launches. While W was not directly affected, the incident exposed scalability risks in the ecosystems it relies on. Additionally, competition from LayerZero—currently dominating 58% of the cross-chain messaging market, compared to Wormhole’s 27%—poses a challenge. New entrants like Axelar’s Bitcoin bridge are also emerging as potential threats to Wormhole’s market share [1].

A planned fee-sharing mechanism set to launch in Q4 2025 is expected to redirect protocol revenues to W stakers. At present, 47% of the token’s supply is staked across five chains, although staking yields remain undisclosed. If the fee-sharing system is well-designed, it could incentivize long-term holding. However, subpar annual percentage returns (APRs) could trigger sell-offs, as seen in the case of Aave’s GHO in 2024 [1].

Crypto analyst Michaël van de Poppe has expressed a bullish outlook, citing strong institutional partnerships and favorable liquidity conditions. He predicts a potential short-term price target of over 80% if the market breaks higher [1]. On the other hand, some analysts caution that W could experience a dip to $0.065–$0.075 in August, driven by competitive pressures and historical volatility.

The token’s ability to maintain its recent gains will depend on its performance around key support levels and the successful conversion of institutional relationships into tangible on-chain adoption. A breakout above $0.0927 could open the door for further gains, whereas weakness below $0.0818 may shift momentum in favor of bears [1].

Source:

[1] Wormhole Price Nears Breakout – Will W Extend Its 13% Weekly Rally?

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