WETH

What Is Wrapped Ether (WETH)?

Wrapped Ether (WETH) is an ERC-20 token created by depositing native Ether (ETH) into a smart contract at a 1:1 ratio. The purpose of wrapping ETH is to make it compatible with the ERC-20 token standard, allowing it to be recognized and utilized directly by decentralized exchanges (DEXs) and various smart contracts. ERC-20 is the standard for fungible tokens on Ethereum, defining essential rules for transferring tokens and querying balances. Smart contracts are self-executing programs deployed on the blockchain. WETH can be “unwrapped” back into ETH at any time via a contract function, typically incurring only a small gas fee (transaction cost).

Current Price, Market Cap, and Circulating Supply of Wrapped Ether (WETH)

As of 2025-12-23 14:44 UTC, WETH is priced at approximately $2,946.07 with a circulating supply of 3,375,317.59 tokens, resulting in a market capitalization of about $9,943,905,836.08. The 24-hour trading volume is around $1,216,121,324.15, with a 24-hour price change of -3.32%. Data is sourced from user reports and weth.io.

WETH’s total supply fluctuates as users wrap and unwrap ETH, and currently matches the circulating supply. There is no fixed maximum supply, as WETH is minted and burned on demand to reflect ETH deposits and withdrawals. WETH’s short-term price movements closely follow ETH but may have minor discrepancies across trading pairs or cross-chain versions due to variations in fees and liquidity.

Who Created Wrapped Ether (WETH) and When?

WETH was not launched by a single organization in a one-off issuance; rather, it is a set of widely adopted wrapping contract implementations. As decentralized trading and market making evolved, the Ethereum community gradually established common versions (such as WETH9) around 2017 to standardize ERC-20 compatibility for DEXs and other DeFi protocols. See references at weth.io (accessed 2025-12-23) and public Ethereum community resources. Since WETH is an open standard, implementations may differ slightly, but the core mechanism remains consistent.

How Does Wrapped Ether (WETH) Work?

To obtain WETH, users send ETH to an audited and widely used wrapping contract. The contract records the deposit and mints an equal amount of WETH to the user’s address at a 1:1 ratio. To redeem ETH, users invoke the “unwrap” function, which burns the corresponding WETH and returns ETH to their address. Minting and burning refer to the on-chain creation or destruction of tokens.

Because WETH follows the ERC-20 standard, it supports allowances and transfers, enabling seamless interaction with DEXs, lending protocols, yield aggregators, and more. Note that only native ETH can be used to pay gas fees on the Ethereum network; WETH cannot be used for gas payments.

What Are the Main Use Cases for Wrapped Ether (WETH)?

In decentralized trading, many token pairs use WETH as their base or settlement asset to unify interfaces and settlement logic. For market making and liquidity pools, users commonly provide WETH alongside another token to earn trading fees and possible incentives; liquidity pools enable anyone to supply assets in exchange for deeper market liquidity.

Within lending protocols, WETH can be used as collateral to borrow stablecoins or other assets. Collateral means that if the price drops below a certain threshold, liquidation can occur. In NFT marketplaces, many bids and auctions are conducted in WETH because it supports allowance approvals and automated settlement—making contract-based transactions easier.

Wallets and Extended Solutions in the WETH Ecosystem

Major Ethereum wallets like MetaMask support sending, receiving, and approving WETH transactions. Hardware wallets, such as Ledger devices, allow offline private key storage for enhanced security. Your private key is the core credential controlling your on-chain assets—losing or exposing it can result in irreversible loss.

For monitoring and management tools, blockchain explorers such as Etherscan let you track WETH transactions and contract interactions. Cross-chain bridges and Layer 2 networks (L2), like Optimism and Arbitrum, also have their own versions of “WETH,” typically issued by official or widely trusted bridge contracts on those networks. Each network uses different WETH contract addresses—always verify these through official documentation or reputable sources before interacting.

Key Risks and Regulatory Considerations for Wrapped Ether (WETH)

Contract and address risks: Always verify that you are interacting with mainstream, audited, and widely adopted WETH contract addresses to avoid fake tokens. Cross-chain differences: On L2 or other chains, WETH is issued by different contracts or bridge operators with unique rules and addresses; sending assets to the wrong network or address can result in loss.

Custody and private key risks: Storing assets on an exchange account means you rely on the platform’s security and risk controls; if you self-custody assets, safeguard your private keys and recovery phrases carefully. Using hardware wallets and multi-signature setups provides extra security. Regulatory compliance: Crypto asset regulations—including tax treatment—vary by jurisdiction; before trading or withdrawing funds, familiarize yourself with local requirements and complete necessary identity verification.

How to Buy and Securely Store Wrapped Ether (WETH) on Gate

Step 1: Register and complete identity verification. Create an account on Gate’s website or app, following prompts for email/mobile verification and KYC to increase limits and enable withdrawals.

Step 2: Deposit funds. On your Gate account asset page, choose to deposit fiat currency or transfer in assets like USDT or ETH. Ensure you select the correct network (e.g., Ethereum ERC-20) to avoid lost funds due to incorrect deposits.

Step 3: Search trading pairs and place orders. On the trading page, search for “WETH”—common pairs include WETH/USDT or WETH/ETH. Select either market or limit order as needed; review quantity and transaction fees before confirming.

Step 4: Monitor your holdings and manage risk. After purchase, view your WETH balance on your asset page. It’s recommended to set price alerts to manage risk from sudden volatility.

Step 5: Secure storage. For long-term self-custody, withdraw your WETH to your personal Ethereum wallet address. Always confirm you’re selecting Ethereum mainnet and double-check your target address before withdrawing.

Step 6: Backup and risk control. Securely back up your recovery phrase. Use hardware wallets and multi-signature solutions when available. Never operate from untrusted devices. Before withdrawing or bridging large amounts, test with a small transaction to validate the process and addresses.

Comparison: Wrapped Ether (WETH) vs Ether (ETH)

Asset type: ETH is Ethereum’s native asset; WETH is an ERC-20 token “wrapped” via smart contracts at a 1:1 ratio. Utility & compatibility: ETH is used for paying gas fees and on-chain operations; WETH cannot pay gas but is fully compatible with the ERC-20 ecosystem—ideal for DEXs, lending platforms, and NFT permissions. Fees & process: Converting ETH to WETH or unwrapping back requires contract calls with gas fees; holding ETH directly does not. Risk profile: While their value remains tightly pegged, WETH involves additional contract interaction risks—especially when using cross-chain versions.

Summary of Wrapped Ether (WETH)

The core value proposition of WETH is enabling ETH to function as an ERC-20 token for seamless DeFi and smart contract integration. Its price and market cap closely mirror ETH but supply dynamically adjusts through wrapping/unwrapping operations. For newcomers, understanding the distinctions between WETH and ETH—choosing correct networks/contracts—and following Gate’s standardized purchase and withdrawal procedures helps mitigate risk. Practically speaking: start with small tests, back up your private keys, prioritize mainstream audited contracts—and you’ll be well-positioned for DEX trading, liquidity provision, lending activities, and NFT transactions.

FAQ

Why Wrap ETH into WETH? Why Not Use ETH Directly?

While ETH is Ethereum’s native coin, DeFi applications require compliance with the ERC-20 standard for seamless interaction. WETH is created by locking up ETH at a 1:1 ratio to generate an ERC-20 token version—allowing you to use ETH freely on decentralized exchanges, lending protocols, and more. You can always convert WETH back to ETH without risk.

Does the Exchange Rate Between WETH and ETH Fluctuate?

The exchange rate between WETH and ETH is always 1:1—it never fluctuates. WETH is fully backed by actual ETH; whenever you unwrap WETH, you receive an equal amount of ETH. While there might be tiny price differences due to liquidity on some platforms, major exchanges like Gate keep prices essentially identical.

How Can I Transfer My WETH from Gate Exchange to My Wallet?

Locate your WETH assets in your Gate account, select “Withdraw,” then enter your wallet address (double-check for accuracy). You’ll pay a small gas fee for network processing; funds typically arrive within minutes. Always test with a small amount first to confirm your wallet can receive WETH before transferring larger amounts.

Can I Convert Unused WETH Back to ETH?

Absolutely—you can always unwrap WETH back into ETH at a 1:1 ratio via any DeFi app or exchange that supports it; this only incurs a minimal gas fee. Alternatively, you can sell your WETH directly for ETH on Gate or similar exchanges—both methods are straightforward.

In What Scenarios Is WETH Especially Useful?

WETH is essential within the DeFi ecosystem—it’s the core trading pair on DEXs like Uniswap, serves as collateral in lending protocols, and enables yield farming via liquidity pools. If you simply wish to hold ETH without participating in DeFi activities, there’s no need to wrap it as WETH.

Glossary of Related Terms for Wrapped Ether (WETH)

• ERC-20: The standard for fungible tokens on Ethereum that ensures tokens are interchangeable and tradable.
• Smart Contract: A blockchain-based program that executes transactions automatically without intermediaries.
• Liquidity Pool: A fund consisting of token pairs used by decentralized exchanges to facilitate trading.
• Gas Fee: The transaction fee required for executing operations on the Ethereum network.
• DeFi: Decentralized Finance—financial services provided without traditional financial institutions.
• Wrapped Token: A native asset converted into a token format compatible with a specific standard.

References & Further Reading on Wrapped Ether (WETH)

• Official Sites / Whitepapers:

  • https://weth.io/
  • https://ethereum.org/en/developers/docs/standards/tokens/erc-20/
  • https://github.com/gnosis/canonical-weth

• Development / Documentation:

  • https://docs.openzeppelin.com/contracts/4.x/erc20
  • https://ethereum.org/en/developers/docs/smart-contracts/
  • https://github.com/ethereum/EIPs/blob/master/EIPS/eip-20.md

• Authoritative Media / Research:

  • https://ethereum.org/en/wrapped-eth/
  • https://consensys.net/blog/metamask/what-is-wrapped-eth-weth-and-how-to-wrap-eth/
  • https://academy.binance.com/en/articles/what-is-wrapped-ether-weth-and-how-to-wrap-it