Trump-linked company World Liberty Financial has made significant progress in the past few months since its launch. In fact, despite WLFI’s prices dropping recently, its business has been increasing.
It’s in the news today after one of the co-founders, Zak Folkman, revealed an upcoming development for WLFI. During Consensus Hong Kong, Folkman announced the launch of a foreign exchange platform (FOREX) called World Swap.
This exchange will operate under WLFI’s stablecoin project, USDI. Although further announcements are expected at an event at Mar-a-Lago this month, it is clear that liquidity will be introduced to World Liberty Finance.
More activity for the USD1 stablecoin
This development reinforces the growth recorded by USD1 since its launch. In just 10 months, USD1 has become the fifth largest stablecoin by market capitalization, according to CoinMarketCap.
WLFI could be poised to challenge established broadcasters. At the time of writing, Tether’s USDT was still the most capped, at $184.6 billion, while Circle’s USDC followed with $73 billion. Sky Protocol’s USDS (SKY) and Ethena’s USDe followed respectively.
USD1 looked poised to overthrow USDe, with only a billion between its caps. Such a development would require more than 1 USD, thereby increasing supply and, therefore, market capitalization.
Source: CoinMarketCap
The capital letter is nothing without real use. However, USD1 activity has seen a real recovery.
In fact, the weekly stablecoin transfer volume was $13.42 billion, with an all-time total of $252 billion. The same was true for the number of transfers, which reached a new weekly high of 23.6 million and a cumulative total of 274.3 million.
Source: Token Terminal
Additional data from Token Terminal revealed that asset holders stood at a new high of 598.3k at press time. All of these factors suggested that WLFI’s activities greatly influenced USD1.
Interestingly, their relationship appears to be symbiotic. That said, will WLFI now bottom out for a reversal?
Will the WLFI price now hit bottom?
On the 4-hour chart, the altcoin appears to be forming a double bottom. Volume gaps and imbalances revealed massive buying around $0.10. The trend hints at a potential bullish reversal.
This decline was supported by a whale purchase order worth $10 million USDC. The address reached a total of 47.6 million WLFI at an average price of $0.109.
This data showed whale positioning and liquidity growth, which could impact WLFI prices. Continuing price action in the direction of publication time could target levels above $0.11. The highest level would be $0.19 in the short term.
Source: WLFI/USDT on TradingView
A breakdown below $0.09 could also be possible, making the news less influential.
Finally, social dominance has also increased – around 0.40%. This indicates that participants could buy the idea of the FOREX platform, alongside its $1 operation for World Liberty Finance.
Final Thoughts
- WLFI will launch a FOREX platform within its USD1 stablecoin operations.
- WLFI price appeared to form a double bottom, hinting at a potential reversal.
