WLFI Token: Shocking 40% Decline Causes Millions in Crypto Whales Losses

The cryptocurrency market often presents dramatic shifts. This week, the Trump-linked World Liberty Financial (WLFI) token experienced a significant downturn. This WLFI token decline caused substantial losses for many investors. Specifically, major players, known as crypto whales, faced millions in losses. Despite this, a majority of pre-sale participants continue to hold their positions. This event highlights the volatile nature of politically-affiliated tokens and the broader digital asset landscape.

WLFI Token’s Dramatic Plunge and Crypto Whales Losses

Large cryptocurrency investors, commonly called whales, recently lost millions. They had bet on the price appreciation of the Trump family-linked World Liberty Financial (WLFI) token. Since its launch on Monday, the WLFI token’s price plummeted over 40%. This decline occurred despite a large-scale token burn event. This burn aimed to reduce circulating supply and boost value. Yet, the price continued its descent.

However, some pre-sale holders maintain confidence in the token. Blockchain data platform Bubblemaps reported on Wednesday that 60% of over 85,000 pre-sale participants still held the token. Only 29% had fully sold. This suggests a mixed sentiment among early investors.

Whales are indeed suffering significant losses. One notable instance involved whale wallet 0x432. This investor lost over $1.6 million after closing a 3x leveraged WLFI long position, according to Onchain Lens. The platform warned against Fear of Missing Out (FOMO) investments. This whale had opened a second long position just 15 hours after profiting $915,000 on a previous one. Consequently, they lost the $1.6 million.

Unpacking the WLFI Token’s Performance

Other crypto whales also exited WLFI positions at a loss. This action signaled weakening confidence in the Trump-affiliated token’s future price. This whale selling followed a significant token burn. The WLFI platform burned 47 million tokens on Wednesday. This permanent removal aimed to tighten supply and increase the value of remaining tokens. Nevertheless, the token burn failed to halt its post-launch decline. The WLFI price fell another 18% in the 24 hours leading up to Thursday morning. This marked a total decline of 41% since its Monday launch, according to CoinMarketCap data.

Surging Avalanche Blockchain Activity

Meanwhile, the smart contract blockchain Avalanche recorded a consistent surge in activity. Analysts pointed to growing decentralized trading and returning crypto whale speculation. They seek the next emerging memecoin. Avalanche’s transaction growth surpassed all other blockchains last week. It increased 66% to 11.9 million transactions across over 181,000 active addresses. This signals growing investor interest in the blockchain.

This milestone followed a “landmark effort” by the US Department of Commerce. The department adopted Avalanche, along with nine other public decentralized blockchains, to publish its real gross domestic product (GDP). However, research analyst Nicolai Sondergaard noted this surge cannot yet be attributed solely to government adoption. Instead, the network’s increasing blockchain activity primarily stemmed from:

• 60% DeFi protocol activity: Trader Joe, Aave, Benqi.
• 25% Automated trading bots and MEV.
• 10% Whale trading and memecoin speculation.

The remaining 5% of activity was attributed to blockchain gaming and non-fungible tokens (NFTs). This diverse range of drivers underscores Avalanche’s expanding utility and appeal within the crypto ecosystem.

DeFi Lending Growth Reaches New Heights

Decentralized lending protocols are experiencing a significant surge in total value. They are poised to capitalize on the increasing institutional adoption of stablecoins and tokenized assets, according to Binance Research. DeFi lending protocols are automated systems. They facilitate lending and borrowing via smart contracts, removing the need for traditional financial intermediaries. These protocols have risen more than 72% year-to-date (YTD). They grew from $53 billion at the start of 2025 to over $127 billion in cumulative Total Value Locked (TVL) by Wednesday.

This explosive DeFi lending growth is attributed to accelerated institutional adoption. Stablecoins and tokenized real-world assets (RWAs) play a key role. Binance Research stated, “As stablecoin and tokenized asset adoption accelerates, DeFi lending protocols are increasingly positioned to facilitate institutional participation.”

A significant portion of this growth came from Maple Finance and Euler. These protocols saw rises of 586% and 1,466%, respectively. A Binance Research spokesperson commented on this trend. They anticipate a new generation of on-chain financial products. These products will enable more efficient, transparent, and accessible capital markets. DeFi lending protocols offer a programmable and interoperable framework. This makes them well-suited to facilitate greater institutional participation. This dynamic will enhance DeFi liquidity and the broader crypto ecosystem. It effectively bridges traditional finance with decentralized infrastructure.

Mantle 2.0 Convergence: Accelerating DeFi-CeFi Integration

Mantle 2.0 aims to become the institutional “liquidity chain” for tokenized real-world assets. It champions a new business model. This model may accelerate the mutually beneficial convergence between centralized (CeFi) and decentralized (DeFi) participants. Mantle Network initially launched as an Ethereum layer-2 (L2) scaling solution in 2021 under BitDAO. It was the first L2 network launched by a decentralized autonomous organization (DAO).

In July 2023, BitDAO and Mantle Network consolidated into the Mantle brand. They also adopted the Mantle (MNT) token. The project now enters a “new phase in its lifecycle,” known as Mantle 2.0 convergence. This phase involves Bybit executives as key advisers. It also includes a new roadmap targeting CeFi and DeFi convergence, according to Delphi Digital’s Wednesday report.

Mantle 2.0 may champion a new business model for the cryptocurrency industry. It encourages more DAO-governed projects to merge with major centralized exchanges. This combines decentralized governance advantages with the deep liquidity and mainstream user base of centralized trading venues. On August 18, the Bybit exchange launched multiple exclusive campaigns and earn products for the MNT token. By August 29, Bybit and Mantle revealed a combined roadmap. This awarded MNT holders lower slippage buys, more payment options within the Bybit ecosystem, and other savings and staking products.

Delphi Digital noted, “Mantle is no longer just an L2 but the foundation of Bybit’s ecosystem.” This represents more than a simple partnership. It is a play for RWA dominance. This update shifts the Mantle token into a Bybit utility asset. It anchors MNT’s value to Bybit’s massive daily volume ($3-5B spot, $25B+ derivatives) over simple governance. This marks the emergence of a new competitive landscape. It merges traditional finance infrastructure with DeFi rails.

Venus Protocol’s Crucial Recovery and Market Overview

Decentralized finance (DeFi) lending platform Venus Protocol recently helped a user recover stolen crypto. This followed a phishing attack linked to North Korea’s Lazarus Group. On Thursday, Venus Protocol announced it recovered $13.5 million in crypto. The phishing incident occurred on Tuesday. Venus Protocol promptly paused the platform as a precautionary measure. It then began investigating.

The pause halted further fund movement. Audits confirmed Venus’ smart contracts and front end remained uncompromised. An emergency governance vote allowed the forced liquidation of the attacker’s wallet. This enabled stolen tokens to be seized and sent to a recovery address. This swift action underscores the importance of robust security and governance in the DeFi space.

In other market news, most of the top 100 cryptocurrencies by market capitalization ended the week positively. Data from Crypto News Insights Markets Pro and TradingView confirms this trend. The meme token MemeCore (M) rose by over 236%. It was the week’s biggest winner among the top 100. Following closely was memecoin launchpad Pump.fun’s (PUMP) token, up over 41% during the past week.

This week presented a dynamic picture across the crypto world. While the WLFI token decline caused significant crypto whales losses, other sectors demonstrated resilience and innovation. DeFi lending growth continues to accelerate, driven by institutional interest. Avalanche blockchain activity surged, showcasing the power of decentralized networks. Furthermore, Mantle 2.0 convergence initiatives highlight the evolving relationship between CeFi and DeFi. These diverse developments underscore the crypto market’s constant evolution and potential for both challenges and opportunities.