Trump’s DeFi Project Takes $8M Loss on Ethereum Sale as Market Slumps

Donald Trump’s decentralized finance (DeFi) initiative, World Liberty Financial, just offloaded a hefty chunk of Ethereum—and at a painful loss.

According to data from blockchain analytics firm Arkham, the project sold 5,471 ETH at roughly $1,465 per token, pulling in around $8.01 million. The kicker? That ETH was originally bought at over twice the price, translating into an $8 million realized loss.

The bigger picture is even bleaker. World Liberty Financial originally invested $210 million to purchase 67,498 ETH at an average price of $3,259. With ETH now trading well under that level, the project’s unrealized losses have ballooned to over $125 million. This sell-off mirrors a growing trend among large-scale holders and institutional players reassessing their exposure as ETH’s decline deepens in 2025.

Ethereum’s Painful Slide: What’s Driving the Drop?

Ethereum’s price has tumbled more than 56% year-to-date, currently hovering around $1,400—a far cry from its previous cycle highs. The persistent downtrend has triggered widespread concern across the crypto space, prompting even long-term holders to rethink their strategies.

Case in point: one whale, tracked by Arkham, sold 10,000 ETH worth $15.71 million, netting a $2.75 million profit after holding the tokens for over 900 days. While still in the green, the decision to exit underscores growing uncertainty about ETH’s short-term potential—even among seasoned investors.

Where Could Ethereum Go Next?

So what’s next for Ethereum?

According to crypto analyst Ali Martinez, $1,200 is a critical support level to watch. If ETH manages to hold above this mark, it could stabilize—at least temporarily. But if it breaks below, we may see further downside before any recovery kicks in.

That said, there’s a glimmer of hope. Some market watchers believe Ethereum could be near its cycle bottom, especially with expectations rising that the Federal Reserve might cut rates in May. Should that happen, it could provide a macro tailwind for ETH and the broader crypto market.

Quick Takeaways:

• Trump’s DeFi project sold 5,471 ETH at a $8M realized loss.

• ETH is down 56% in 2025, testing investor confidence.

• Analysts are watching $1,200 as a key support zone.

• Potential Fed rate cuts in May could spark a relief rally.

Bottom Line:

Ethereum’s 2025 journey has been rough, and even high-profile ventures like World Liberty Financial are feeling the sting. With critical support levels being tested and macroeconomic uncertainty hanging overhead, the coming weeks could determine whether ETH finds a floor—or continues its descent.