- WLFI price rebounds over 20%, driven by stablecoin USD1’s growth.
- USD1’s regulatory backing fuels investor confidence in WLFI’s recovery.
- Token buyback and frozen wallets stabilize WLFI after market shakeout.
World Liberty Financial’s WLFI token experienced a significant rebound in price, rising by over 20% to approximately $0.144 in the past 24 hours. This uptick follows a week of historic deleveraging that had caused a sharp decline. Despite this surge, WLFI remains down by 56% from its all-time high recorded just a month ago. The token’s fully diluted valuation has remained stable near $14.5 billion, signaling strong market confidence despite the volatility.
The recovery in WLFI’s price is a clear shift from forced selling to more measured buying, suggesting renewed investor confidence. The price move aligns with recent developments surrounding USD1, a payment stablecoin that has been gaining significant traction in the market. This growth is largely attributed to the GENIUS Act, which was signed into law by President Trump in July 2025, providing the regulatory framework needed for USD1 to scale. USD1, which now holds a $2.6 billion fully diluted valuation, boasts 377,000 holders and an impressive $610 million in 24-hour volume.
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USD1’s Regulatory Backing Propels Growth
USD1’s surge in value is directly tied to its compliance under the GENIUS Act, which provides the token with a level of regulatory oversight comparable to traditional financial institutions. This legislative move has allowed World Liberty Financial to position USD1 as a competitive alternative to major banks, including Citigroup and Goldman Sachs. The introduction of new lending and borrowing products, alongside integrations with Chainlink, has further bolstered sentiment around WLFI and its broader ecosystem.
Adding to the positive momentum, World Liberty Financial executed a buyback program soon after the market shakeout, purchasing 55.69 million WLFI tokens for $10 million USD1 at an average price of $0.18. This buyback not only reduced the supply of WLFI tokens but also helped stabilize the market. Furthermore, the company froze a wallet holding over $70 million worth of WLFI tokens, which was attributed to Justin Sun. This move was aimed at preventing large-scale sell-offs that could disrupt the token’s price.
The combination of these actions has been key in restoring confidence among investors, leading to a smoother path for WLFI’s recovery. Traders are now keeping a close eye on the market structure, with expectations that WLFI could follow a V-shaped recovery similar to previous market rebounds. The focus will remain on USD1’s volume and whether the buyback strategy will continue, which could offer more price stability in the near term.
In the coming days, WLFI’s price trajectory will depend on broader market conditions and the team’s ability to maintain discipline in its token supply strategy. Should these factors align, WLFI is well-positioned to defend higher lows and continue its measured climb higher.
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