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- Santiment detects massive dormant WLFI wallet activity during Binance trading expansion today.
- Binance USD1 integration triggers record WLFI realized profits from longtime dormant holders.
- WLFI remains stable despite massive token movements and profit-taking activity recently.
Binance’s trading support on the World Liberty Financial network’s ecosystem coincided with massive dormant wallet activity reported by Santiment. According to Santiment, there has been a lot of dormant wallet activity across the World Liberty Financial network while Binance is increasing its trading support around the WLFI ecosystem. During the bull market in the wake of Binance’s USD1/BTC trading pair, the analytics platform pegged that billions of dormant WLFI tokens have been moved by long-term investors, who have seen massive returns.
The on-chain activity raised market interest in WLFI as it had been months since investors lost faith in the wallet. Besides, the traders followed the network very strictly after several controversies and reports of insider linked token sale during this year imposed pressure on the token during the governance. Furthermore, Binance’s new addition added WLFI’s USD1 stablecoin to Bitcoin futures trading. As a result, the development has contributed to improving liquidity for the whole ecosystem and to boosting short-term market activity around the token.
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Record WLFI Profit-Taking Emerges During Binance Expansion
According to Santiment data shared on X, on May 18, WLFI had 1.8 billion tokens left to settle in realized profits, making it the biggest realized profit event on the network ever. At the same time, the Age Consumed metric jumped to 17.4 trillion token-days, suggesting that wallets that haven’t moved for long periods of time have awakened.
The surge came in at the time Binance launched the USD1/BTC pair, enabling traders to stake WLFI’s USD1 stablecoin to obtain Bitcoin futures contracts for the first time, Santiment reported. The listing consequently generated a much higher level of visibility for the WLFI ecosystem, and provided liquidity conditions for older holders looking to sell existing holdings.
Furthermore, the analysts have tended to read big Age Consumed surges as indicators that long-term investors have begun to shift their “sleeping money” into the market. The movement coincided right on the nose with one of the project’s biggest exchange-related developments in recent months in the case of WLFI.
Moreover, the realized profit indicators indicated that many investors sold tokens at a much higher price than the price at which they purchased them during the event. The Binance momentum may have created an attractive opportunity for dormant holders to make profits in spite of the challenging market conditions in this project, Santiment said.
Despite the massive Dormant wallet activity, WLFI Holds Gains.
As per Santiment, the WLFI token had experienced a lengthy period of decline before entering the next trading event and coming close to hitting an all-time low of almost 88% down from its ATH. The analytics platform attributed the previous drop to “governance disagreements, controversy around a proposed 62 billion token unlock and concerns around insider-related token distribution”.
Regardless of the massive amount of realised profits, however, WLFI managed to rally around 5.5% after the on-chain surge, indicating that the buyers were able to take in a lot of selling pressure during this time frame. Besides, there was some speculation in the market that the market was not that bearish on Binance’s integration with the USD1, despite the pullback. Santiment also advised traders to closely watch WLFI’s Age Consumed activity and watch for a further significant surge as it may mean more dormant holders are ready to sell tokens out of the market.
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