Early this morning, World Liberty Financial’s WLFI suddenly soared by more than 30%. Let’s try to understand what happened to justify such a rise.
WLFI suddenly skyrockets
Over the past 24 hours, the price of World Liberty Financial’s WLFI has risen 30%, trading at nearly $0.16 at the time of writing.
Specifically, this surge occurred early this morning, with an impressive green candle showing an increase of up to 32% in one hour before retracing somewhat:
However, there is currently no news from World Liberty Financial to justify such a rise. On the other hand, on-chain data shows significant liquidations in recent hours, proportional to the usual activity on perpetuals linked to the token.
More specifically, for $3.25 million in short positions liquidated, 70% of these volumes were realized on Hyperliquid (HYPE):
While the amounts involved may seem small, they must be viewed in the context of the token’s liquidity. In this case, market depth data shows that currently, less than $111,000 in long positions are needed on Hyperliquid to cause a 2% increase:
However, while these figures shed light on the cause of the bullish movement, they do not explain the reason for these sudden liquidations. Was it a mistake by an overly greedy trader? A hunt for short sellers or insider trading? This remains to be clarified for the moment.
Recently, rumors have begun to circulate that Changpeng Zhao (CZ), the founder of Binance, may be joining the World Liberty Financial team. However, he denied this in an interview with Fox News.
While CZ admits to having met Eric Trump at a conference in Abu Dhabi, he categorically denies any partnership:
I think this is completely false information. I have no business relationship with any of President Trump’s sons.
As for World Liberty Financial, the Trump family’s decentralized finance (DeFi) project has yet to deliver on the many promises made in recent months, but it should be noted that its USD1 is the sixth largest stablecoin on the market, with a market capitalization of $2.85 billion.
That said, this figure can be put into perspective, since $1.65 billion of this market cap is held in Binance’s Hot Wallet number 20.
