Trust Wallet Token (TWT) Price Prediction

Deep Dive

1. Product-Led Demand Surge (Bullish Impact)

Overview: Trust Wallet’s August 2025 updates introduced FlexGas (letting users pay network fees with TWT) and partnered with Ondo Finance to offer tokenized real-world assets. Over $80M in stablecoins are now earning yield via its Earn feature, with U.S. access recently unlocked (Trust Wallet).

What this means: Direct fee payment integration creates recurring TWT demand, while RWA exposure could attract institutional inflows. Historical precedent: TWT rallied 66% after July’s FlexGas beta launch (CryptoNewsLand).

2. Margin Exposure Shift (Bearish Impact)

Overview: Binance reduced TWT’s collateral ratio from 60% to 45% on June 27, 2025, for Portfolio Margin users – lowering its borrowing power relative to assets like KAVA (-5%) and NOT (-7%) (Binance).

What this means: Reduced collateral efficiency may prompt margin traders to substitute TWT with higher-ratio assets, potentially triggering sell-offs during market stress. The 45% ratio now lags behind major alts like SOL (60%) and ETH (70%).

3. Altcoin Season Fuel (Mixed Impact)

Overview: The CMC Altcoin Season Index sits at 75 (up 63% monthly), signaling capital rotation from Bitcoin. However, TWT’s 1.6% volume-to-market-cap ratio trails rivals like WalletConnect (126%), indicating weaker speculative interest (CryptoNewsLand).

What this means: While sector-wide alt rallies could lift TWT, its thin liquidity compared to peers raises volatility risks. The token underperformed during June’s mid-cap sell-off (-6.8% vs. market -2.3%), showing sensitivity to sentiment shifts.

Conclusion

TWT’s path hinges on whether utility-driven adoption outpaces margin-related sell pressure. The $1.50 technical target remains viable if FlexGas usage grows and RWA integrations meet their $200M TVL goal. However, traders should monitor Binance’s TWT futures open interest (current: $3.9B) for signs of leveraged unwinding.

Key question: Can Trust Wallet’s U.S. user base expansion offset the collateral ratio cut’s impact on margin traders?