Trump’s DeFi Platform WLFI Sparks AAVE Coin Price Swings
During the recent election cycle, former President Donald Trump launched WLFI, a new DeFi platform and meme coin project that immediately attracted significant attention. One week after WLFI tokens became transferable, investors speculated that Aave DAO would receive a 7–8% allocation of the WLFI token supply. When WLFI’s team publicly denied the rumor to WuBlockchain and clarified that no such allocation existed, AAVE suffered a sharp sell-off, causing its price to fall from around $380 to $339. AAVE then rebounded above $350 and even tested the $380 level again, displaying typical DeFi volatility driven by market news and sentiment shifts. Aave founder Stani Kulechov confirmed that a related community proposal was put to a vote after all, adding further swings. Traders view the $350 zone as a key support level, with a potential rally toward $400 if bullish momentum persists. Given AAVE’s leading role in decentralized finance and renewed trader interest following WLFI’s market entry, the coin’s outlook remains positive in both the short and long term.
Bullish
The denial of a 7–8% WLFI token allocation initially triggered a sharp AAVE sell-off, but the swift price recovery above the critical $350 support level and renewed tests of $380 demonstrate strong buyer interest. Trump’s WLFI platform launch has heightened market attention on AAVE, fueling volatility but also creating clear entry points for traders. Historical patterns show that major news-driven dips in leading DeFi tokens often precede renewed bullish trends as the market digests and reaffirms project fundamentals. Given AAVE’s solid protocol metrics, active community governance, and visible support at $350, the outlook remains bullish. If WLFI’s involvement continues to draw liquidity into the DeFi sector, AAVE could convincingly break above the $400 resistance in the near term, supporting both short-term momentum and long-term growth.