Donald Trump’s first son, Eric Trump, recently nudged investors to buy Ethereum amid the latest on-chain activity from the Trump-inspired WLFI.
Ethereum has been largely unimpressive this bull cycle, barely mirroring the broader market bullish momentum. The second-largest cryptocurrency by market cap recorded a second consecutive monthly loss in January, playing contrarian to the upward market disposition of assets like Bitcoin and XRP.
Nonetheless, Eric Trump and World Liberty Financial (WLFI) continue to show interest. The latter, a decentralized finance (DeFi) protocol inspired by President Donald Trump, has continued to stack the altcoin king both for operational purposes and expectations that the asset would regain bullish traction.
Ethereum Rebounds Mildly
In a tweet late Monday, Eric Trump pitched the second-largest crypto asset to an audience of over five million individuals. He nudged market users to acquire Ethereum following its underwhelming market performance, stating that, in his opinion, this phase is the best time to stack the token.
In my opinion, it’s a great time to add $ETH.
— Eric Trump (@EricTrump) February 3, 2025
Meanwhile, Max Keiser, the Bitcoin advisor to El Salvador’s president Nayib Bukele, added spice to Eric Trump’s Ethereum pitch. In response to the tweet, he joked that Trump’s first son promotes unregistered security, reminiscing on Ether’s initial regulatory hurdle with the US Securities and Exchange Commission (SEC).
Notably, the endorsement coincided with an impressive Ethereum comeback. The high-caliber asset bounced from as low as $2,152, appreciating over 33%, to close at $2,879.
WLFI Responds to Concerns Following Funds Shuffle
While Eric Trump promoted Ethereum, WLFI was busy expanding its liquid stash of the asset. Data from Arkham shows that the DeFi protocol unstaked 19,423 staked-wrapped Ether on Monday and bought another 1,826 ETH ($5 million).
Nonetheless, bullish sentiments from the purchase quickly went south after the DeFi protocol’s multi-sig address moved significant amounts of its held Bitcoin, Ethereum, and Wrapped Ethereum to new addresses.
Arkham shared that WLFI’s portfolio meteorically dropped from around $400 million to $90 million, raising concerns among the crypto community. Speculations of a sell-off dominated the discussion, as a chunk of the transactions involved a shift to the Coinbase Prime address.
Meanwhile, the project quickly responded to the growing speculation, reassuring users that the shuffle was not a precursor to a sell-off. WLFI tweeted that it was routine and a simple stash reallocation for business purposes.
We’re making routine movements of our crypto holdings as part of regular treasury management, and payment of fees and expenses and to address working capital requirements. To be clear, we are not selling tokens—we are simply reallocating assets for ordinary business purposes.…
— WLFI (@worldlibertyfi) February 3, 2025
The WLFI address shifted roughly $164 million worth of wrapped Ethereum, $64 million in Ethereum, and other assets like AAVE, ONDO, MOVE, ENA, and LINK.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
