The biggest news recently is that World Liberty Financial (WLFI), under Trump, has begun injecting funds into DeFi projects. WLFI was established in September of this year, with a business model of providing lending and interest income services for crypto assets. However, after Tron founder Justin Sun announced on November 25 that he would invest $30 million in WLFI, becoming the largest investor and joining the WLFI advisory team, the project quickly transformed into a more aggressive investment company.
Recently, WLFI used $12 million in USDC funds to purchase various cryptocurrencies, including $10 million in Ethereum (ETH), $1 million in Chainlink (LINK), and $1 million in Aave (AAVE), which has led market investors to rush to buy previously undervalued DeFi tokens. Although the amounts are not large compared to other investment institutions that often invest tens of millions, the fact that it is a DeFi project led by the Trump family undoubtedly sends a strong message to the market—"DeFi regulation may be significantly relaxed."
WLFI previously announced a partnership with Chainlink, stating that it would adopt its price oracle and cross-chain technology, and that it would choose to establish a lending DeFi protocol on the Aave v3 main chain. Although the investment amount is not large, due to Trump's support behind it, this cooperative investment has also caused the prices of the two tokens to soar by more than 50%, and it is expected that the flow of funds will shift back from Bitcoin to DeFi tokens.
Taking LINK as an example, according to Santiment analysis, the price increase of LINK is mainly attributed to whales accumulating large amounts. In the past two months, the number of wallets holding over 100,000 LINK has increased by 5.69 million, while wallets holding less than 100,000 have decreased by 5.67 million. This pattern usually indicates that there may be more price growth in the future and shows that major investors have already completed their positions, just waiting for the news from WLFI to drive the price up.
The market is focusing on the positive news and policy aspects, and is redeploying funds into DeFi tokens. For example, decentralized trading protocols like Uniswap and SUI have seen astonishing gains, but we believe that cryptocurrencies have just begun to flow into DeFi. If the broader market does not decline, there is a significant opportunity for DeFi tokens to outperform the broader market. Currently, this is just the beginning of the rise in DeFi, which is worth investors' attention and expectation.
