Wormhole’s native token, W, surged by more than 22% on Sept. 18 after the protocol introduced a sweeping upgrade to its tokenomics.
Summary
- Wormhole’s W token gained 22% following a major tokenomics overhaul.
- The upgrade introduced a protocol reserve, 4% staking yield, and smoother unlocks.
- Spot and derivatives trading surged, indicating strong market confidence.
At press time, W was trading at $0.109, marking gains of 21% over the past week and 40% in the past month. The move was supported by an extraordinary spike in activity, with spot trading volume rising nearly 595% in 24 hours to $319.5 million.
Derivatives markets amplified the momentum, as futures volume increased by 728% to $607.9 million, while open interest climbed 76% to $113.1 million, a sign that traders are entering new positions rather than closing existing ones.
Wormhole tokenomics overhaul
In a Sept. 17 blog post, the Wormhole (W) team framed the “W 2.0” upgrade as a new chapter for W. A central element is the introduction of the Wormhole Reserve, a pool where protocol revenues and ecosystem value will accumulate. This mechanism will decrease the amount of liquid supply in circulation while strengthening the token’s link to network growth.
Another important change is the establishment of a target base yield of 4% for governance stakeholders. Wormhole intends to use protocol revenue and the existing token supply to finance this yield, as opposed to inflation-based models. The protocol also shifted its distribution framework by replacing annual cliff unlocks with bi-weekly releases starting in October.
The new package is designed to smooth supply pressure, better align incentives for contributors and validators, and create a steady income signal for active participants
Wormhole price technical analysis
On the chart, W has broken to the top of a recent range and is testing resistance near $0.11–$0.112. Shorter supports lie around $0.09, just over the 20-day SMA, and $0.07, near the lower Bollinger Band area. The 10, 20, 30, and 50 EMAs are all sloping up and trading below the price, which keeps the near-term trend bullish.
Although they are not extreme, momentum indicators are extended. Just above 70, the relative strength index shows strength but is beginning to move into overbought territory. Momentum and the MACD both show positive readings, and the Ultimate Oscillator is supportive. The commodity channel index is high, which has historically preceded pullbacks after sharp runs.
If W holds above $0.10 and clears $0.112 with sustained volume, the path to $0.13 and then $0.15 opens up as traders price in reserve accumulation and ongoing yield mechanics. A failure to hold $0.09 risks a rapid unwind back toward $0.07 as leveraged longs liquidate.
