The launch of the transferable version of the WLFI token put a stress test on the Ethereum network. After weeks of low fees, with gas under 1 gWei, the network jumped to a red-hot 100 gWei per transaction.
The Ethereum network is seeing a day of overheated gas prices, recalling the peak days of 2021. After weeks of normal-level activity, with gas fees under 1 gWei as the network faced a new set of conditions.
WLFI may have a more lasting effect on the Ethereum ecosystem, as Trump’s fund intends to roll out lending, voting, and other activities around the token.
ETH gas prices immediately spiked after the launch of a transferable WLFI token, breaking above 100 gWei for the first time in months. | Source: Eth Gas StationImmediately after World Liberty Fi made its token transferable and started trading, the price of gas rose above 100 gWei. This meant that swaps cost over $145 at one point.
The Ethereum network showed it was still at risk for high fees and congestion in the case of high-profile events and trader exuberance, though few other tokens or contracts have caused a similar gas spike during the most recent bull cycle.
DeFi participants were affected, as Ethereum became more expensive for bridging and borrowing. Even regular operations were priced above $100, with token and ETH transfers at over $10.
Following the gas spike, ETH also recovered to $4,403.56, retaining the expectations of increased usage.
WLFI becomes the top smart contract
On-chain data showed the WLFI token became the most active smart contract as the tokens were distributed and traded.
In the hours after the launch, WLFI usage led to 129.22 ETH burned from fees. Ethereum base fees also spiked to an anomalous level, based on validator compensation data.
The recent gas usage spike followed the real token transfers. As Cryptopolitan reported earlier, WLFI also saw a spike in activity for derivative products, hours before its official launch.
The effect of WLFI was also felt in the general count of Ethereum transactions. After a successful August, the token also boosted the number of daily transfers to over 1.58M transactions in 24 hours. Daily active addresses also increased above 550K.
On-chain data shows one of the World Liberty Fi wallets is boosting WLFI trading by deploying the project’s native USD1 stablecoin. The token is still in price discovery, trading at around $0.31, with 10% in daily gains.
On-chain transfer data shows World Liberty Fi is using Cow Protocol to perform swaps. The trading uses both USD1 and USDC in a series of high-speed trades. On-chain data shows a series of high-speed interactions with multiple stablecoins, DEX, and DeFi protocols, all linked to one of the known wallets of World Liberty Fi.
World Liberty Fi announces post-launch tokenomics
World Liberty Fi announced its post-launch plans, including a new distribution and free float.
WLFI started trading and transfers with a supply of 24,669,070,265 tokens, as World Liberty Fi announced in a recent blog. The organization itself will hold 10B unlocked tokens.
Alt5 Sigma Corporation will hold 7,783,585,650 tokens, or around 8% of the supply, based on its WLFI treasury strategy.
Around 2.8B of the tokens will be used for liquidity and marketing purposes, while the public presale holders will receive around 4B unlocked tokens. All remaining WLFI will still be locked, based on a long-term vesting schedule.
The WLFI launch event also invited scrutiny, as it turned out that the token launched with a relatively small free float. The highly active trading sparks fears of potential early profit-taking, as the token immediately broke to a new price range above its early buyer price.
WLFI launched with around $7M in liquidity on its leading DEX pair, almost immediately dropping from $0.31 to $0.028. There is still no data of whale profits, and early snipers have mostly seen losses.
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Source: https://www.cryptopolitan.com/eth-gas-spikes-wlfi-busiest-smart-contract/
