World Liberty Expands into Lending, While WLFI Faces Selling Pressure

Summary:
In response to the significant growth in crypto-collateralized lending, World Liberty Financial (WLFI) has introduced a new lending and borrowing platform. Despite this expansion, WLFI's market performance remains under pressure, with limited price movement and increasing selling activity.

Key Takeaways

World Liberty Financial (WLFI) launched a crypto lending platform called World Liberty Markets.
The lending market allows users to supply and borrow digital assets, particularly focusing on its stablecoin, USDI.
Despite the launch, WLFI's market performance has not shown positive signs, trading within a narrow range.
Selling pressure persists, with indicators suggesting potential downward movement for WLFI.

World Liberty Financial launched crypto lending markets as WLFI traded sideways.

World Liberty Financial's New Lending Market

On January 12, World Liberty Financial launched its new lending and borrowing platform, World Liberty Markets, powered by Dolomite. This online application enables users to supply and borrow digital assets in a consolidated marketplace.

A significant feature of this platform is its focus on USDI, World Liberty Financial's dollar-backed stablecoin, as well as its native token, WLFI. Users can earn yields on their supplied USDI balances, while borrowers may use various assets as collateral, including Tether, USD Coin, Ethereum, and tokenized Bitcoin, such as Coinbase-wrapped BTC (cBTC). This launch marks the second significant product from World Liberty Financial, following the introduction of USDI in 2025. At the time of writing, USDI's circulating market capitalization was approximately $3.48 billion, according to CoinMarketCap.

Impact on WLFI Market Performance

Even with the introduction of new lending markets, WLFI has struggled to improve its market performance. The token has been trading in a narrow price band around $0.16 to $0.17. At the time of this report, WLFI was trading at roughly $0.168, reflecting minor gains throughout the day, based on CoinMarketCap data.

Current market conditions indicate ongoing challenges, with both demand and supply pressures mounting. WLFI has been experiencing significant selling pressure, leading to a notable decline in scarcity.

WLFI Netflow Source: CoinGlass

According to CoinGlass, WLFI's Netflow has remained positive for two consecutive days, amounting to $2.8 million during this period. A positive Netflow typically indicates increased inflows, often associated with aggressive selling in the market. Historically, such inflows are often a precursor to downward price pressure, which seems to align with current market trends.

The Directional Movement Index (DMI) has recently dipped to 23, indicating a decrease, while the negative index has surged to 30, highlighting strong selling momentum.

WLFI DMI & Stoch Source: TradingView

Additionally, the Relative Vigor Index (RVGI) has fallen to 0.12, further confirming the strength of this downward trend. Such metrics, when at these levels, suggest robust selling pressure and a weakened market structure. If selling continues, WLFI might breach the support level of $0.16 and potentially drop to $0.15.

Conversely, if the lending market launch has a beneficial impact on price movements, there exists a possibility for WLFI to target $0.20.

Conclusion

As World Liberty Financial expands its offerings into crypto lending, the market's response has been tepid, with WLFI under sustained selling pressure. Observers will be keen to see if these new developments can ultimately foster a reversal in its market trajectory.