Uncategorized

World Liberty Financial Burns 47 Million Tokens—Will WLFI Price Recover?

On September 2, World Liberty Financial initiated a burn of 47 million tokens, aiming to decrease supply and reignite momentum after experiencing a 55% decline from its post-launch peak. However, the WLFI price has yet to demonstrate signs of recovery.

Summary

  • 47 million WLFI tokens, constituting 0.19% of the circulating supply, have been burned.
  • WLFI is presently trading at about $0.23, reflecting a 55% decrease from its post-launch high, while maintaining a consolidation above the $0.21 support level.
  • A proposed community effort to allocate protocol fees for ongoing token burns may assist in elevating the WLFI price if it receives approval.

World Liberty Financial (WLFI), the cryptocurrency associated with the Trump family’s crypto initiative, performed a burn of 47 million WLFI tokens on September 2, directing them to an irretrievable burn address, according to Lookonchain. This action accounts for roughly 0.19% of the current circulating supply, which exceeded 24.66 billion tokens, reducing the total supply to approximately 99.95 billion.

Although the burn took place around 15 hours ago, its effect on the price has been negligible. WLFI continues to trade at $0.23, nearly the same as the previous day’s close, following a significant 55% plunge from its all-time high of $0.46.

Since the decline, the token has been moving sideways, holding support near $0.21. The key resistance level is identified between $0.25 and $0.26, which coincides with the peaks following the initial sell-off.

The future price movement of WLFI remains uncertain, as evidenced by the one-hour chart showing small-bodied candles that indicate market indecision. Additionally, trading volume has sharply decreased since yesterday, displaying waning momentum and reduced engagement.

World Liberty Financial burns 47M tokens — will WLFI price recover? - 1
Source: TradingView

Buyback plan could lift WLFI price

Despite the recent token burn not having an immediate impact on WLFI’s price, there is a sense of cautious optimism among holders who acquired tokens post-launch. The team introduced a proposal yesterday for a continual buyback-and-burn program, funded by protocol-owned liquidity fees.

If this proposal is approved, the buyback-and-burn initiative could create ongoing deflationary pressure on WLFI’s supply, potentially revitalizing momentum for WLFI’s price.

Leave a Reply

Your email address will not be published. Required fields are marked *