World Liberty Financial (WLFI) is currently the best performing cryptocurrency among the top 100 projects by market capitalization on the daily chart. According to CoinGecko data, WLFI has gained 5.7% in the past 24 hours and is up 8.3% week-on-week. However, in other time frames the asset is still in the red zone, down 3.1% on the 14-day chart and 13.5% month-on-month. WLFI’s rise is surprising considering the larger crypto market is facing major challenges. Let’s take a look at why World Liberty Financial (WLFI) is rising today and whether the rally will continue in the coming weeks.
What’s behind World Liberty Financial’s rise? Will it last?
WLFI’s recent price surge may be due to the project’s USD1 stablecoin reaching a $3 billion market cap milestone. The stablecoin market has experienced tremendous growth over the past few years. Several projects, including Ripple, have started working on stablecoins. The fact that the market capitalization of $1 has reached $3 billion may have contributed to the rise in investor sentiment. USD1’s significant growth may have been further amplified by Binance’s USD1 Boost program. According to the announcement, the program is “designed to help USD1 holders maximize their rewards.”
World Liberty Financial’s (WLFI) rally is commendable, but it’s unclear whether the rally can be sustained. WLFI’s rally could stall in the coming days, given that the larger crypto market has faced a major correction and is currently in a consolidation phase. Bitcoin (BTC) has struggled to sustain the $89,000 price level, and other assets may follow its trajectory. WLFI’s price could fall if investors start taking profits.
Furthermore, market participants are currently taking a risk-averse approach. This argument is complemented by the fact that gold and silver frequently reach new peaks. Investors can exit their WLFI positions, lock in profits and move their funds to a safe haven.
