Chainlink regains 2021 highs amid Trump’s DeFi firm’s investment

Chainlink (LINK) regained high prices not seen since 2021 after President-elect Donald Trump’s decentralized finance (DeFi) firm invested in it.

On-chain data shows that Trump’s World Liberty Finance (WLFI) purchased another million of LINK late Thursday for the straight second day—bringing the firm’s total holdings of the token to $2 million. The decentralized autonomous organization (DOA) administering WLFI also acquired $246,000 of AAVE, reaching $1.2 million of holdings.

Data shared by blockchain data platform Lookonchain in a recent X post shows that so far WLFI spent $30 million on Ethereum (ETH), $10 million on tokenized Bitcoin (BTC), $2 million on Chainlink and $1.25 million on AAVE.

According to market data, Chainlink is trading at $29.6 after seeing its price increase by about 0.7% over the last 24 hours and 22.6% over the previous seven days. The current price has not been seen since late 2021, but is still significantly lower than the all-time-high of $52.88 reported back in September 2021.

World Liberty Financial is the Trump family’s DeFi project. It establishes a unified platform for users to borrow and lend cryptocurrencies, create liquidity pools, and exchange stablecoins. The platform’s WLFI token allows holders to participate in the governance of the DAO that administers it.

WLFI leverages Chainlink to access market data and better integrate with the broader cryptocurrency ecosystem. Chainlink powers a leading “oracle” system, a technical term referring to systems that allow smart contracts to access data that would otherwise be unavailable on-chain.

World Liberty Financial also has close ties to AAVE. AAVE is a DeFi ecosystem that allows peer-to-peer lending and borrowing, similar to WLFI.

In October, the WLFI DAO proposed deploying a World Liberty Financial Ave instance, which would be focused on providing stablecoin liquidity for Ethereum, a standard tokenized Bitcoin, and growing the Ave protocol user base. The proposal was since accepted, and the instance was deployed, profoundly linking the two protocols.

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