Massive Ethereum Sell-Off by World Liberty Financial Causes Market Turmoil
The crypto market took a serious hit on April 9, 2025, after a wallet connected to World Liberty Financial (WLFI) — a decentralized finance (DeFi) platform with ties to Donald Trump — offloaded 5,471 ETH worth nearly $8 million. The average selling price? Just $1,465 per ETH, a staggering 55% loss from their original buy-in.
WLFI reportedly purchased 67,498 ETH at an average of $3,259, totaling over $210 million. This heavy sale at a significant loss has raised eyebrows, leaving traders and analysts wondering: Why sell now?
Some speculate the move could be part of a larger portfolio restructuring or an urgent liquidity play. Others are calling it a panic move — possibly triggered by Ethereum’s extended downtrend.
Ethereum Slides to Two-Year Low as Whales Exit
The timing of WLFI’s Ethereum dump couldn’t be worse for the market. ETH has now dropped over 56% year-to-datein 2025 and fell more than 21% just last week, briefly touching a two-year low at $1,396.
- Current ETH Price: ~$1,474
- 24-Hour Drop: -5.42%
- Market Cap: Down 5.41% to $177.89 million
- Trade Volume: Down 18.91% to $27.24 million
According to analyst Ali Martinez, $1,200 is the next key support zone. If Ethereum breaks below this level, it could head toward $1,000, triggering further sell-offs.
On-chain data shows that many short-term holders are already capitulating, locking in over $500 million in realized losses. If long-term holders start exiting, we could see a deeper slide.
WLFI Launches USD1 Stablecoin Amid ETH Crash
Despite the ETH losses, World Liberty Financial is pushing forward with new developments. On March 25, WLFI officially launched USD1, a new stablecoin backed 1:1 by cash, U.S. Treasuries, and similar high-quality assets.
Here’s what we know about USD1:
- Live on Ethereum and BNB Chain, with more networks planned
- Audited reserves, custody handled by BitGo
- Marketed as a compliant, transparent stablecoin for institutions
- Raised $550 million in 2024 through token sales
- Backed by major names, including Justin Sun, who contributed $75 million and now serves as an advisor
WLFI is positioning USD1 as a safer alternative to riskier or under-collateralized stablecoins — a strategic pivot that may help the company rebuild investor confidence.
What’s Next for Ethereum and WLFI?
With ETH hoveringq near critical support, the next few weeks will be crucial. A break below $1,200 could send prices spiraling toward $1,000, especially if long-term holders join the sell-off trend.
As for World Liberty Financial, the focus may shift from Ethereum investments to expanding the reach of USD1. If the stablecoin gains traction among institutions, it could provide a lifeline for WLFI after its recent losses.
Final Thoughts: Turning Point or Trouble Ahead?
The Ethereum market is clearly in a fragile state. While WLFI’s ETH sell-off may be just one piece of the puzzle, it’s a signal that even major players are feeling the pressure.
All eyes are now on two key questions:
- Will Ethereum hold the $1,200 level, or is a bigger crash coming?
- Can USD1 help WLFI bounce back and reposition itself as a stablecoin powerhouse?
The answers may shape the next7 chapter for both Ethereum and one of crypto’s most controversial institutional players.
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