Cow Protocol's $COW token has surged more than 30% after World Liberty Financial (WLFI), a DeFi project linked to Donald Trump, made a 2.5 million USDC transaction to buy 759.36 ETH through the platform.
Currently, World Liberty Financial holds around 16,400 ETH, worth $53.73 million.
World Liberty Financial Continues to Influence Altcoins
According to data from Arkham, the project has been actively buying various assets, including ETH, WBTC, AAVE, LINK, ENA, and ONDO. These tokens have suffered losses in recent days, coinciding with broader market volatility due to the Federal Reserve's rate cuts and inflation forecasts.
Meanwhile, WLFI's continued use of the CoW Protocol has attracted attention, fueling speculative interest in the platform. The $COW token is up nearly 35% today, approaching $1.
WLFI’s investment models have fueled market rallies throughout December. Earlier this month, the project spent over $45 million, including purchases of Ethereum, Ondo (ONDO), and Ethena (ENA), pushing COW to $1.02, its highest value in over a year.
Other transactions this month included purchases of $AAVE and Chainlink’s LINK token, sending LINK’s price soaring to $28, its highest in three years. Additionally, WLFI and Ethena Labs recently added sUSDe as collateral on WLFI’s Aave v3, boosting its functionality.
The project also recently swapped $10.4 million worth of cbBTC to WBTC, after Coinbase delisted cbBTC. Justin Sun, a major investor and advisor to WLFI, has publicly supported WBTC, arguing that it has stronger governance and transparency than cbBTC.
Despite these developments, Trump’s World Liberty Financial has faced many challenges since its launch. The project reduced its presale target from $300 million to $30 million, a 90% reduction. WLFI tokens remain non-transferable and are limited to non-US and accredited US investors. These restrictions are contributing to the project’s early sales difficulties.