The leaders, who had only won one of their previous five games across all competitions prior to today's match, took just five minutes to break the deadlock through Ruben Neves and added a second on the half-hour mark courtesy of a Diogo Jota strike.
There was more bad news for Sheffield United when goalkeeper Simon Moore was sent off with just over 15 minutes remaining, and Wolves went on to make the most of their numerical advantage as Ivan Cavaleiro made it 3-0 shortly afterwards.
The defeat leaves the Blades five points adrift of the playoff places, while Wolves remain clear at the top having taken another step towards winning automatic promotion back to the Premier League.
Wolves made a quick start to the match with Helder Costa flashing a volley narrowly wide even before they took the lead in the fifth minute.
The opener arrived in style too as Neves collected the ball 25 yards from goal and took a touch before curling a fine finish into the top corner.
Sheffield United responded well to that early setback, though, and threatened to level things up quickly when Ricky Holmes's cross was only cleared as far as Ched Evans, who fired his effort over the crossbar.
Despite that fast start, clear chances were few and far between at both ends of the field until Wolves doubled their advantage on the half-hour mark, when Jota exchanged passes with Cavaleiro before tucking his finish into the bottom corner.
Sheffield United looked the most likely in the early stages of the second half, though, and Holmes squandered a good chance shortly after the hour mark when he sliced an effort wide of the target.
Leo Bonatini was the next to come close for Wolves, though, and the hosts' hopes of seeing out the victory improved even further with just 17 minutes remaining when Moore was giving his marching orders having come off his line and collided with both Jota and referee Darren Bond.
Wolves immediately took full advantage of that from the resulting free kick when Cavaleiro's effort took a deflection off the wall on its way past substitute keeper Jake Eastwood.
Deadline-day signing Benik Afobe was brought on for his second Wolves debut moments later, and he almost marked his return to the club with a goal when he roses highest to meet Matt Doherty's cross, only to plant his header narrowly wide of the target.
The hosts never looked in any danger of letting their lead slip in the closing stages, though, as Wolves made it back-to-back wins, while Sheffield United have now lost successive matches for the first time since December.
WOLVES (3-4-3): Ruddy; Bennett, Coady, Boly; Doherty, N'Diaye, Neves, Douglas; Costa (Bonatini, 65'), Jota (Gibbs-White, 81'), Cavaleiro (Afobe, 77')
SHEFFIELD UNITED (3-5-2): Moore; Basham (Leonard, 71'), Stearman, O'Connell; Baldock, Evans, Holmes (Donaldson, 71'), Fleck, Stevens; Clarke, Wilson (Eastwood, 76')