The World Liberty Financial (WLFI) token has experienced a significant price rally, extending gains that began in mid-December 2025. The surge was triggered by geopolitical developments involving former U.S. President Donald Trump, who launched an attack on Venezuela and captured its leader, Nicolás Maduro. This event injected volatility into the market, pushing WLFI to recent highs and causing its price to gain about 11% over a 24-hour period, trading near $0.172 after rebounding from $0.143 earlier in the week.
On-chain data reveals a rapid improvement in holder profitability, with the percentage of WLFI supply in profit jumping from roughly 25% to 40% within 24 hours of the news, reaching a four-month high. This signals a broad-based recovery, benefiting early participants who endured the token's initial major crash. However, exchange net position change data shows the first green bar in nearly three months, indicating net inflows of WLFI to exchanges—a signal of potential distribution and selling pressure as holders look to lock in gains.
In a separate but related development, the World Liberty Financial community voted to approve a major incentive strategy for its USD1 stablecoin. The proposal, which passed with 77.75% approval, authorizes the allocation of up to 5% of the protocol's treasury—using unlocked WLFI tokens—to fund listings and incentive programs across both centralized (CeFi) and decentralized (DeFi) finance platforms. The goal is to drive adoption and sustain liquidity for USD1, which has accumulated nearly $3,000 million in total value locked (TVL) within just six months of launch.
The team confirmed that every treasury allocation will be publicly disclosed and all agreements communicated transparently. While the vote is not legally binding, it sets explicit criteria for future treasury usage, directing protocol resources toward USD1 distribution in a highly competitive stablecoin market where adoption hinges on liquidity and integrations.
Technically, WLFI broke out in late December from the $0.15–$0.155 range and is now trading above its short- and long-term exponential moving averages, with the 200-period EMA acting as support near $0.147. The token's weekly gain stands at around 20%, though it faces selling pressure concentrated between $0.172 and $0.182. For a sustainable breakout, WLFI would need to reclaim $0.172 as firm support, which requires reduced selling and renewed demand.
