Trump-Backed WLFI Token Skyrockets Past XRP in Derivatives Volume—Traders Reel From $30M Bloodbath
Political memecoins aren’t just trending—they’re dominating derivatives markets, and WLFI’s surge has left even established players like XRP in the dust.
Massive Volume, Massive Pain
WLFI’s derivatives volume didn’t just outpace XRP—it bulldozed it. While the exact trigger remains unclear, the outcome is brutally simple: traders collectively absorbed a staggering $30 million in losses. High leverage, hype-driven action, and abrupt price moves created a perfect storm.
Speculative Frenzy Meets Reality
When a token tied to a polarizing political figure grabs attention, volatility follows. This wasn’t organic growth—it was a liquidity frenzy. And as usual in crypto, when volume explodes, somebody pays the price. Sometimes it’s shorts, sometimes it’s longs—this time, it was both.
Welcome to the new era of crypto-trading: where influencer momentum can briefly outweigh utility, and where “fundamentals” are just six syllables that get in the way of a good story. At least the exchanges made their fees.
Top 5 Assets Derivatives Volume in The Last 24 Hours (Source: CoinGlass)
This highlights the level of speculative demand around the new Donald Trump-related digital asset.
Additionally, its spot trading volume during the period reached $4.7 billion, placing it among the top 10 most-traded digital assets.
Meanwhile, the intensity of the trading activities came at a cost as WLFI’s value slipped more than 14%, falling from about $0.33 to $0.24 as of press time.
CoinGlass data showed that this pullback triggered an estimated $30 million in trader losses.
WLFI’s buyback proposal
The launch coincided with a proposal from World Liberty Financial that could define WLFI’s long-term trajectory.
The team submitted a plan on Sept. 1 to use protocol-owned liquidity (POL) fees to buy back WLFI from the open market and permanently burn those tokens. Fees generated by independent liquidity providers WOULD remain outside the program.
Under the proposal, POL fees from liquidity pools on Ethereum, BSC, and solana would be collected and redirected to burn addresses, reducing circulating supply over time.
The project representatives said the initiative rewards committed holders by increasing their relative stake as speculative tokens are removed from circulation.
WLFI community members will soon vote on whether to approve the buyback-and-burn strategy or reject it in favor of keeping fees in the Treasury.
If approved, the measure would establish a framework for recurring supply reductions and could later expand to include other protocol revenue streams.
