As a seasoned crypto investor with over a decade of experience under my belt, I must admit that the recent news about Trump’s World Liberty Financial investing in Ethereum, Aave, and Chainlink has caught my attention. This isn’t just any investment; it’s a move by a high-profile entity that could potentially shake up the crypto market.
Donald Trump’s financial firm, World Liberty Financial (WLF), has significantly invested millions of dollars into Ethereum (ETH), Aave (AAVE), and Chainlink (LINK). This investment has resulted in noticeable surges in the prices of AAVE and LINK. As per data from Lookonchain via X and confirmed using Etherscan, the fund bought around $10 million worth of ETH, $1 million worth of AAVE, and $1 million worth of LINK on December 11.
This fund has made its initial purchases of AAVE and LINK, marking these as its first recorded acquisitions. In the past 12 days, it has invested approximately $30 million in USDC to acquire over 8,000 ETH. The average price per ETH was around $3,701.
Trump’s World Liberty(@worldlibertyfi) is buying $ETH, $LINK and $AAVE!
Over the last 9 hours, World Liberty Multisig wallet has invested a total of 10M USD Coin (USDC) in purchasing Ethereum (ETH), spending about 10M USDC to buy approximately 2,631 ETH at an average price of $3,801. Additionally, the wallet spent 1M USDC on Chainlink (LINK), acquiring around 41,335 LINK for roughly $24.2 per token. Lastly, it invested another 1M USDC in Aave (AAVE), buying approximately 3,357 AAVE at an average price of $297.8.
— Lookonchain (@lookonchain) December 12, 2024
In just the last day, the price of AAVE increased approximately 31%, while LINK saw a gain of around 23.5%. The news seems to have had a significant impact on these cryptocurrencies.
Option: The increase in activity occurs hand-in-hand with World Liberty Financial’s recent move to adopt Chainlink technology. Last month, WLF declared their intention to use Chainlink as the primary source for on-chain data and cross-chain compatibility, enhancing their protocol system’s security.
As an analyst, I would rephrase the press release as follows:
In October, the WLF team put forward a suggestion on the Aave governance platforms regarding the integration of their own Aave v3 ecosystem. Stani Kulechov, founder of Aave, has verified that the WLF instance is not an exact replication of Aave’s code but instead functions as a separate, self-contained environment linked to distinct, Know Your Customer (KYC)-compliant user interfaces.
This project uses the biggest blockchain platform that supports smart contracts, taking advantage of fundamental building blocks in decentralized finance. At the same time, it adheres to strict regulatory guidelines. Initially, this venture is only accessible to accredited investors based within the U.S.
Over the past five weeks, the price of AAVE has surged by approximately 138%, demonstrating a strong technical strength. Today’s trading activity has propelled it above the 0.5 Fibonacci level, currently sitting at $356.84 (determined from the peak to the trough in this cycle). If this level maintains on a weekly closing basis, potential future price levels could reach the 0.618 Fib at $430.29, the 0.786 Fib at $534.87, and ultimately the all-time high from May 2021 of $668.
Over the last five weeks, Chainlink has shown exceptional growth, increasing by over 175%. Currently, the key technical resistance level seems to be around $28.88, which corresponds to the 0.5 Fibonacci retracement. If this level is convincingly surpassed, it could pave the way towards the 0.618 Fibonacci level at $34.57, followed by the 0.786 Fib at $42.67, and potentially reaching the May 2021 all-time high (ATH) of approximately $53.
At press time, LINK traded at $27.67.
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2024-12-12 23:47