Ethereum Overheats: WLFI Pushes Gas Fees Back to 2021 Levels

Ethereum just experienced a shock reminiscent of the legendary 2021 bull run. The launch of the transferable WLFI token, linked to Trump’s World Liberty Fi fund, sent gas fees skyrocketing to 100 gWei – after weeks of nearly free transactions.

Fees Like the Old Days Only days ago, swaps cost less than a dollar. On Monday, however, traders faced a harsh reality – $145 per swap and over $10 for a simple token transfer. Such costs haven’t been seen in DeFi for years. Ethereum once again revealed its weakness: when hype and network congestion surge, users are forced to pay tens or even hundreds of dollars for basic transactions.

WLFI Drives a New Boom After launch, WLFI quickly became the most active smart contract on Ethereum. In just the first few hours, it burned more than 129 ETH in fees. Daily Ethereum transaction volume spiked above 1.58 million transfers, while active addresses climbed past 550,000. World Liberty Fi also introduced its native stablecoin USD1, used in swaps alongside USDC. Trading activity is running through the CoW Protocol, which enables high-speed interactions across DEX and DeFi platforms.

ETH Price Reacts Despite soaring fees, ETH jumped to $4,403, as investors bet that WLFI’s momentum will drive higher network activity and strengthen Ethereum’s long-term position.

WLFI Tokenomics Revealed World Liberty Fi also unveiled its final token distribution: 🔹 24.67 billion tokens entered circulation

🔹 10 billion retained by the organization

🔹 7.78 billion held by Alt5 Sigma Corporation (around 8% of supply)

🔹 2.8 billion allocated to marketing and liquidity

🔹 4 billion distributed to presale investors Although WLFI started trading near $0.31, it quickly dropped to $0.028. This highlights the risks of a limited float and the possibility of large holders cashing out profits early.

What Does It Mean for Ethereum? The WLFI frenzy is a reminder that Ethereum remains vulnerable to congestion and fee spikes – yet also demonstrates its enduring strength as the go-to network for billion-dollar projects that continue to push DeFi’s boundaries.

#Ethereum , #WLFI , #blockchain , #CryptoNews , #defi

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