Trump-Backed World Liberty Buys $48M in ETH as Ethereum Eyes DeFi Growth

The Trump-backed World Liberty Project has made waves in the crypto market with substantial acquisitions, including a recent purchase of Ethereum (ETH) worth $48 million. 

This move aligns with the project’s ongoing accumulation strategy, which has placed it among the more prominent entities in the crypto ecosystem.

Massive Crypto Purchases Across Multiple Tokens

In the last 24 hours, World Liberty purchased 1,408 ETH, 177,928 Chainlink (LINK), 19.3 million TRON (TRX), 13,261 AAVE, and 507,000 ENA, all worth approximately $4.7 million each, except ENA at $470,000. 

Notably, the project has focused on diversifying its portfolio across major blockchain tokens, signaling confidence in the broader crypto market.

Additionally, data from Arkham Intelligence revealed that World Liberty spent $48 million USDC to acquire 14,403 ETH at an average price of $3,333 per token in the last 12 hours. Following this purchase, World Liberty’s total Ethereum holdings stand at 41,269 ETH, valued at over $140 million.

This increase in holdings comes amidst a market environment where Ethereum has recently strengthened against Bitcoin, raising questions about potential shifts in market sentiment.

Ethereum Foundation Allocates 50,000 ETH to DeFi

The Ethereum Foundation has taken steps to engage in decentralized finance (DeFi) by allocating 50,000 ETH from its treasury to participate in lending and yield-generating protocols. 

This decision follows criticism regarding the Foundation’s recent sale of 100 ETH, which some in the crypto community claimed indicated reliance on Ethereum sales for funding.

In an official statement, Ethereum co-founder Vitalik Buterin addressed these concerns, explaining why the Foundation has historically opted not to stake its holdings. 

While noting that regulatory risks have since lessened, he said,

“The concerns historically were (1) regulatory, (2) if [the Foundation] stakes ourselves, this de-facto forces us to take a position on any future contentious hard fork.” 

Tim Beiko, a key figure in Ethereum’s core protocol development, added that staking the Foundation’s treasury of approximately 269,000 ETH would generate an annual yield of 8,000 ETH, roughly $26 million. This yield, he clarified, would cover less than 20% of the Foundation’s $134.7 million annual expenditure, making staking an insufficient option for addressing overall funding needs.

Market Context and Ethereum Performance

Ethereum trades at $3,254.97 at press time, reflecting a 4.18% decline over the past 24 hours but a 2.20% increase over the last week. Ethereum ETFs have also recorded net inflows of $246 million, signaling continued investor interest despite short-term price fluctuations.

Crypto analyst Jelle observed a weekly bullish divergence forming for ETHBTC, suggesting a possible shift in sentiment during what has historically been Ethereum’s strongest quarter. 

Meanwhile, the Foundation’s allocation to DeFi signals its commitment to strengthening the blockchain’s utility, which could create more opportunities for sustainable growth.

FAQs: