Why did the price of WLFI fall?
World Liberty Financial (WLFI) dropped 0.73% in the last 24 hours, adding to a 12% loss over the past week. The main reasons include weak technical signals, concerns about how the project is managed, and overall challenges in the cryptocurrency market.
- Technical Breakdown – Price is showing signs of weakness and has fallen below key support levels.
- Governance Uncertainty – Mixed reactions to a buyback program aimed at reducing token supply.
- Market-Wide Pressure – Altcoins like WLFI are struggling as Bitcoin gains dominance.
Deep Dive
1. Technical Breakdown (Bearish Impact)
Overview:
WLFI is currently trading at $0.177, which is below important moving averages—the 7-day average is $0.1927 and the 30-day average is $0.207. The Relative Strength Index (RSI) is at 38.19, indicating weak buying momentum. The MACD indicator also points to a downward trend.
What this means:
The price has dropped below the $0.18 to $0.22 range it had been holding since mid-September, triggering automatic sell orders (stop-losses). Using Fibonacci retracement analysis, the next support level is around $0.173, which was a low point in September. Trading volume is low at $195 million, down 35% compared to last year, showing limited buying interest to push the price back up.
Key watch:
If WLFI falls below $0.173 and stays there, it could drop further toward $0.16 to $0.14, which are important Fibonacci support levels.
2. Governance Concerns (Mixed Impact)
Overview:
On September 26, a governance proposal was approved to use all protocol fees to buy back and burn WLFI tokens, aiming to reduce supply. However, experts are skeptical because:
- The protocol generates only about $1 million in fees per month, which is small compared to the $4.35 billion market cap.
- Most presale tokens (80%) are still locked and will be unlocked in the future.
What this means:
While burning tokens reduces supply, the upcoming unlocks could lead to more selling pressure. This creates an incentive for early investors to sell now and buy back later at lower prices. Recent on-chain data shows that Robinhood and Bitget bought $30 million worth of WLFI last week, but Binance and Coinbase sold small amounts (source).
3. Altcoin Weakness (Bearish Impact)
Overview:
WLFI’s performance (-0.73%) was worse than the overall crypto market (-0.61%). Bitcoin’s market dominance increased to 58.51%, up 0.25% year-over-year, indicating investors are moving money from altcoins to Bitcoin.
What this means:
Investors are favoring Bitcoin as a “safe haven” amid regulatory uncertainty and increased scrutiny of stablecoins. WLFI’s connection to Trump-related assets adds political risk, making cautious investors less likely to buy.
Conclusion
WLFI’s recent decline is due to technical weaknesses, doubts about its tokenomics, and a general downturn in altcoins. Although buybacks and large investor purchases suggest some potential for stabilization, WLFI’s future depends on Bitcoin’s market direction and whether WLFI can prove its real-world value.
Key watch: Can WLFI rise back above $0.185 (the 200-day exponential moving average) to challenge the current bearish trend?
What could affect the price of WLFI?
WLFI’s price is influenced by political factors and risks tied to decentralized finance (DeFi) adoption.
- Token Unlocks (Bearish) – 80% of WLFI tokens are still locked, but unlocking them could flood the market.
- USD1 Stablecoin Growth (Bullish) – The $2.6 billion USD1 stablecoin is expanding on new blockchains, increasing its real-world use.
- Political Attention (Mixed) – Connections to Trump bring both interest and regulatory challenges.
In-Depth Analysis
1. Token Unlocks & Large Holder Activity (Bearish Impact)
Overview:
Most of WLFI’s 100 billion tokens (about 80%) are locked and will be gradually released based on community decisions. Recently, large holders (whales) have moved $139 million worth of tokens out of liquidity pools. One whale lost $1.63 million in a single trade (CoinDesk). Additionally, 2.94 billion WLFI tokens linked to Justin Sun are frozen, raising concerns about market manipulation.
What this means:
If many tokens are unlocked suddenly, it could cause a price drop due to oversupply—especially since some whales hold more than 5% of the total tokens. A recent burn of 47 million tokens on September 5, 2025, didn’t stop the downward trend, indicating weak buying interest.
2. USD1 Stablecoin Expansion (Bullish Impact)
Overview:
WLFI’s USD1 stablecoin, valued at $2.6 billion, is expanding to popular blockchains like Solana, Mantle, and Aptos. This allows it to connect with various DeFi platforms. Partnerships with Sui (which has $2.6 billion in total value locked) and Bybit (with $30 billion in daily trading volume) aim to increase liquidity and practical uses such as international money transfers.
What this means:
Growing adoption of USD1 strengthens WLFI’s role in governance and utility. For example, Mantle’s integration with real-world assets (RWA) could attract institutional investors, potentially increasing demand if fee-sharing features are introduced.
3. Regulatory & Political Risks (Mixed Impact)
Overview:
The Trump family owns about 40% of WLFI, drawing political and regulatory attention. Senator Elizabeth Warren criticized the $57 million Trump earnings from WLFI as “corruption” (Forbes). On the other hand, Trump’s pro-crypto policies, like the GENIUS Act, might protect WLFI from harsh regulations.
What this means:
Political ties can boost retail investor interest—WLFI’s price has seen daily jumps of 27% following Trump endorsements. However, potential regulatory actions by the SEC against centralized governance could lead to sharp selloffs.
Conclusion
WLFI’s price depends on managing the risks of token unlocks while benefiting from the growth of USD1 in payment systems. Cross-chain expansion and political support offer potential gains, but large token holders and regulatory scrutiny remain significant risks. Will the upcoming debit card launch on September 22, 2025, drive more retail adoption or increase political challenges?
What are people saying about WLFI?
The World Liberty Financial (WLFI) community is excited about token burns, but big investors and political connections are causing price swings. Here’s what’s happening:
- Buyback plan close to approval – Almost everyone supports reducing supply through token burns
- Justin Sun’s $75M stake frozen – Accusations of market manipulation
- Price testing $0.16 support level – Technical signs point to possible price drops
- Ethics investigation linked to Trump associates – Senators question insider token holdings
- Governance vote on token transferability – Could increase trading but also selling pressure
Deep Dive
1. Buyback Proposal Nears Approval — Positive for WLFI
MarcosBTCreal, a popular crypto commentator, shared that 99.81% of the WLFI community supports a plan to use all protocol fees to buy back and burn tokens, making WLFI scarcer.
This is good news because reducing the number of tokens available can increase their value if demand stays steady.
2. Justin Sun’s $75M Stake Frozen — Negative for WLFI
Justin Sun, a well-known figure in crypto, reportedly moved WLFI tokens on Binance to sell them, leading the WLFI team to freeze his holdings.
This raises concerns about central control and could scare off big investors who want a more transparent and decentralized system.
3. Price Testing $0.16 Support — Bearish Signals
According to CCN, WLFI’s price is struggling to rise above $0.24, with weak buying interest and a 67% drop in trading volume since launch.
This suggests traders aren’t confident in a price rebound right now, which could lead to further declines.
4. Ethics Probe on Trump Advisors — Potentially Negative
Senators are investigating Steve Witkoff’s large $800 million WLFI holdings amid deals involving the UAE chip industry.
This kind of political scrutiny can hurt WLFI’s reputation and value if it leads to forced sales or regulatory changes.
5. Transferability Vote Passes — Mixed Impact
Over 99% of WLFI holders support allowing tokens to be freely traded, which could help the project grow by making it easier to buy and sell WLFI.
However, this also means early investors might sell their tokens, putting downward pressure on the price.
Conclusion
The outlook for WLFI is mixed. The buyback and burn plan could help stabilize and increase the token’s value over time. But short-term challenges like low demand, frozen large stakes, and political investigations create uncertainty. Keep an eye on how the buyback mechanism is implemented and whether WLFI can maintain support around $0.16.
What is the latest news about WLFI?
World Liberty Financial (WLFI) is navigating a mix of political attention and growth in decentralized finance (DeFi) as its WLFI token experiences price swings. Here are the key updates:
- Trump’s $870M Bitcoin Investment (October 10, 2025) – Trump Media & Technology Group (TMTG) bought $2 billion in Bitcoin, linking WLFI to broader crypto market trends.
- Sui Partnership Increases TVL (October 10, 2025) – WLFI’s stablecoin USD1 helps drive $2.6 billion in DeFi activity on the Sui blockchain.
- Solana Treasury Expansion (October 9, 2025) – USD1’s integration on Solana attracts institutional interest amid ongoing regulatory decisions about crypto ETFs.
Deep Dive
1. Trump’s $870M Bitcoin Investment (October 10, 2025)
Overview:
Donald Trump’s company, Trump Media & Technology Group (TMTG), now holds $2 billion worth of Bitcoin, making it one of the largest Bitcoin investors in the U.S. This follows World Liberty Financial’s earlier move into crypto, which added over $1 billion to Trump’s net worth through WLFI and a related memecoin.
What this means:
This connection to Bitcoin could improve WLFI’s reputation among institutional investors. However, it also mixes political interests with financial ones, which can create uncertainty. Since May 2025, TMTG’s market value has dropped 60%, showing some skepticism about crypto-related valuations (Forbes).
2. Sui Partnership Increases TVL (October 10, 2025)
Overview:
The Sui blockchain’s Total Value Locked (TVL) reached $2.6 billion, partly thanks to its partnership with WLFI that began in March 2024. WLFI’s stablecoin USD1 is now the seventh-largest stablecoin globally, with a $2.6 billion supply.
What this means:
This partnership boosts WLFI’s role in decentralized finance, although Sui’s TVL is growing rapidly (37% monthly increase), while WLFI’s token price has dropped 12% in the past week. Newer blockchains like Sui are attracting more liquidity, increasing competition (The Defiant).
3. Solana Treasury Expansion (October 9, 2025)
Overview:
Solana’s treasury assets have grown to nearly $3 billion, helped by a partnership between Grayscale and Figment for institutional staking. WLFI’s USD1 stablecoin adoption has accelerated through America.Fun’s launch on Solana and liquidity pools on Raydium.
What this means:
WLFI’s strategy to operate across multiple blockchains is gaining momentum. However, while Solana’s treasury grew by 22.7%, WLFI’s token price has fallen 22.48% over the past 90 days. Regulatory clarity on altcoin ETFs will likely influence short-term market trends (Yahoo Finance).
Conclusion
WLFI’s future depends on balancing its political connections with expanding DeFi partnerships. While collaborations with Sui and Solana grow its stablecoin presence, regulatory challenges and market volatility remain significant risks. The key question is whether USD1 can overcome compliance hurdles linked to Trump’s crypto investments.
What is expected in the development of WLFI?
World Liberty Financial (WLFI) is making progress with these key developments:
- Debit Card Launch (Late 2025 to Early 2026) – A debit card connected to the USD1 stablecoin will support Apple Pay and peer-to-peer transfers.
- Tokenizing Real-World Assets (Early 2026) – Commodities like oil and timber will be represented on the blockchain, backed by USD1.
- Ongoing Buyback-and-Burn Program – WLFI will keep reducing its token supply by using fees to buy back and destroy tokens.
In-Depth Look
1. Debit Card Launch (Late 2025 to Early 2026)
What’s Happening: WLFI plans to introduce a debit card linked to its USD1 stablecoin, allowing users to spend digital dollars in everyday places through Apple Pay. A new app will also let users send money to each other and trade assets easily, aiming to attract regular users (CoinSpeaker).
Why It Matters: This move could boost the use of USD1 by making it easier to spend and transfer, which may increase demand for WLFI’s governance tokens. However, success depends on getting regulatory approvals and forming partnerships, such as with Bithumb.
2. Tokenizing Real-World Assets (Early 2026)
What’s Happening: WLFI plans to put real-world commodities like oil, gas, and cotton onto the blockchain, using USD1 as a backing reserve. This supports their goal of strengthening the US Dollar’s role worldwide (Bitcoinist).
Why It Matters: This could add new uses for WLFI tokens and attract institutional investors. However, it faces challenges like regulatory rules and technical complexities, so the outcome is uncertain but potentially positive.
3. Ongoing Buyback-and-Burn Program
What’s Happening: WLFI has a system approved by its governance that uses all liquidity fees to buy back WLFI tokens and permanently remove them from circulation. In September 2025 alone, over 47 million tokens worth $1.4 million were burned (Yahoo Finance).
Why It Matters: Reducing the token supply can increase the value of remaining tokens over time. However, short-term effects might be limited if many tokens are sold after unlocking periods.
Conclusion
WLFI’s roadmap focuses on making its USD1 stablecoin more useful in everyday life through the debit card and real-world asset tokenization, while also managing token supply with buybacks. These steps aim to strengthen USD1 adoption and the value of WLFI governance tokens. Still, challenges like regulatory hurdles, fluctuating fee income, and competition remain. An open question is how WLFI’s political connections will affect its ability to work with regulators around the world.
What updates are there in the WLFI code base?
Recent updates to the World Liberty Financial (WLFI) code focus on improving cross-chain compatibility and strengthening governance security.
- Cross-Chain Bridge with Chainlink CCIP (September 1, 2025) – Enables secure transfers of WLFI tokens across Ethereum, Solana, and BNB Chain.
- Multi-Signature Security Audits (September 1, 2025) – Token contracts reviewed by security firms like Blocksec and Zokyo.
- Governance Voting Limits (Ongoing) – Set a 5% voting cap per wallet to prevent any single user from having too much control.
Deep Dive
1. Cross-Chain Bridge with Chainlink CCIP (September 1, 2025)
What happened: WLFI integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP), allowing users to move WLFI tokens and the USD1 stablecoin safely between Ethereum, Solana, and BNB Chain. This is done using Chainlink’s decentralized oracle network, which verifies transactions without relying on a single centralized party. A new Cross-Chain Token (CCT) standard was introduced to keep WLFI consistent across these blockchains.
Why it matters: This update makes WLFI more accessible across popular blockchain platforms, which could attract more users, especially those involved in decentralized finance (DeFi). However, users should still be aware of risks like potential bugs in smart contracts when moving tokens between chains. (Source)
2. Multi-Signature Security Audits (September 1, 2025)
What happened: Before launch, WLFI’s token contracts were audited by several security companies including Blocksec, Zokyo, Fuzzland, and Peckshield. These audits checked important features like how votes are counted, transfer rules, and protections against phishing attacks. WLFI also uses a multi-signature wallet system (Gnosis Safe), which requires multiple team members to approve any major changes to the protocol.
Why it matters: These audits help build trust by identifying and fixing vulnerabilities. However, because the multi-signature wallets are controlled by the WLFI team, the project still has some centralization. Investors should watch how WLFI moves toward more decentralized control over time. (Source)
3. Governance Voting Limits (Ongoing)
What happened: WLFI limits each wallet to a maximum of 5% voting power in governance decisions. This applies to both major protocol upgrades and smaller signaling votes. Voting happens off-chain using Snapshot, but results are recorded on the blockchain. Recent updates fixed loopholes that allowed related wallets to combine votes and bypass the cap.
Why it matters: This voting cap helps prevent any single user or group from dominating governance. However, it doesn’t fully address concerns about large holdings by entities linked to political figures like Trump. Active participation in governance remains important for the community. (Source)
Conclusion
WLFI’s recent code updates focus on making the token usable across multiple blockchains and improving governance security. While security audits and Chainlink integration show technical progress, the project still faces challenges with centralization. The effectiveness of the 5% voting cap depends on how widely WLFI tokens are distributed among users.
How will WLFI’s code evolve to balance its political branding with the ideals of decentralized governance?