WLFI Token Drops but Market Caps Still at $5.8B—How Much Trump Hype Is in the Price?

On September 1, 2025, World Liberty Financial’s token, WLFI, made its much-anticipated debut in the cryptocurrency market. The launch was anything but calm. The token quickly surged to a high of $0.46, only to fall nearly 50% to around $0.23 within hours. Despite this sharp drop, WLFI still managed to secure a market capitalization of $5.8 billion, placing it among the more valuable cryptocurrencies. What makes WLFI stand out is not just its technology but also the political spotlight around it. The project is strongly backed by the Trump family, raising questions about whether its price is supported by genuine utility or by the weight of political influence.

A Year-Long Presale and the Big Launch

WLFI’s launch followed a year-long presale that raised an impressive $2.26 billion from more than 85,000 participants. Each token in the presale was sold for just $0.015, a fraction of its launch value. The total supply of WLFI is capped at 100 billion tokens, but not all were released at once.

When trading began on major exchanges like Binance and Coinbase, WLFI opened above $0.30. However, things quickly turned turbulent. A large part of the supply was unlocked immediately, with 20% of presale tokens claimable from day one. Many early investors rushed to sell and secure profits, putting downward pressure on the price. At one point, WLFI dipped to $0.21 before making a small rebound.

On-chain data from Etherscan showed how much activity this created. During the unlock event, Ethereum gas fees surged to over 100 gwei, as thousands of holders moved their tokens into the Lockbox smart contract for vesting. This Lockbox is designed to manage how tokens are gradually released to prevent sudden dumps. Currently, around 24.66 billion WLFI tokens are circulating, with the remaining 80% scheduled for release as community milestones are reached.

Market Performance and the “Trump Premium”

Even after its rocky start, WLFI’s market cap of $5.8 billion puts it ahead of many well-established tokens. Analysts often refer to this as the “Trump premium”, the idea that the project’s connection to the Trump family adds extra value in the eyes of investors. The family owns 60% of the project, giving WLFI a strong political branding unlike any other token.

But WLFI is not only about politics. The project promises to offer real-world asset tokenization, allowing traditional assets to be represented as digital tokens. It also plans to provide cross-chain lending through Aave V3, and a USD1 stablecoin that offers holders 5–8% yields backed by tokenized U.S. Treasurys. These features, if executed properly, could give WLFI real utility beyond speculation.

A new governance proposal went live on September 2. It suggests using 100% of protocol fees to buy back and burn WLFI tokens. This deflationary model means that every trade would gradually reduce supply, which could help balance out the selling pressure caused by whales. Data shows that WLFI currently has $76 million in reserves supporting its ecosystem.

The Role of Hype and Political Ties

There’s no denying that WLFI’s ties to the Trump brand have fueled much of its early attention. High-profile endorsements from Trump family members and support from investors like Justin Sun, who contributed $75 million during the presale, have amplified interest. In fact, before its correction, WLFI was briefly valued at over $30 billion on some platforms.

However, critics warn that this heavy reliance on political connections could be risky. A 1700% gain from the presale price gave early investors a massive edge, but such rapid gains are often followed by sharp corrections. Some analysts argue that WLFI’s price may not fully reflect its actual utility yet and is being driven more by hype than fundamentals.

The broader regulatory environment also plays a role. Recent developments like the GENIUS Act in the United States, which creates easier paths for stablecoins, may benefit WLFI’s stablecoin ambitions. Still, politically connected projects often attract extra scrutiny from regulators, which could slow down growth.

A Timeline of WLFI’s Rollercoaster

• October 2024 – Presale begins, raising over $2 billion.
• August 2025 – Lockbox smart contract opens for token claims.
• September 1, 2025 – WLFI launches at $0.33, rises to $0.46, then drops to $0.21.
• September 2, 2025 – Governance proposal announced for buybacks and burns.

What Comes Next?

Predictions about WLFI’s future vary widely. Optimists believe the token could reach $1, giving it a staggering $100 billion market cap. Pessimists, however, point to the immediate volatility and heavy whale activity as reasons the token might fall further. With only 24% of tokens currently tradable, scarcity could help stabilize the price. But challenges like Ethereum’s high gas fees and the complexity of cross-chain launches must also be addressed.

WLFI’s story reflects how politics and cryptocurrency are becoming increasingly intertwined. The project demonstrates how political branding can amplify market valuations, but also highlights the risks of relying too heavily on hype. For WLFI to succeed in the long run, it will need to deliver on its promises, stablecoin adoption, lending platforms, and real-world asset tokenization, rather than relying only on political endorsements.

In short, WLFI’s launch is one of the most significant and controversial in recent years. Whether it becomes a lasting success or a cautionary tale will depend on how well the project balances hype with actual utility. For now, WLFI’s debut shows that in the fast-moving world of crypto, price is often shaped as much by perception as by fundamentals.