Ethereum Whales Dump $371M in ETH to Manage Debt Across Aave Protocol

TLDR

• BitcoinOG sold $292M in ETH and repaid $92.5M of Aave debt
• Trend Research sold $79M in ETH and repaid $77.5M in Aave loans
• Both whales acted before liquidation events, avoiding forced sell-offs
• Aave processed $140M in liquidations as whales reduced exposure

Two major Ethereum holders have sold a combined $371 million worth of ETH within 48 hours. Both entities used the funds to repay debt on Aave, indicating a major shift in strategy by large crypto players amid volatile market conditions.

Large-Scale ETH Sales Linked to Loan Repayments

In a 48-hour window, two of the largest on-chain Ethereum holders sold $371 million in ETH. These funds were used to repay outstanding loans on Aave, the decentralized lending protocol.

One of the entities, known on-chain as BitcoinOG (address 1011short), moved 121,185 ETH, worth $292 million, into Binance. Of that, $92.5 million was withdrawn in stablecoins and used to repay debt. The remaining ETH proceeds were not directly tied to repayment, suggesting broader financial repositioning.

The second whale, Hong Kong-based investment firm Trend Research, deposited 33,589 ETH into Binance, worth $79 million. Within 20 hours, it converted most of it into 77.5 million USDT, which was used almost entirely to clear its Aave debt.

BitcoinOG Maintains Large Holdings Despite Sale

Although BitcoinOG made one of the largest ETH deposits in recent months, the repayment covered only about 31.7% of the total ETH sold. The entity continues to hold 30,661 BTC (worth $2.36 billion) and 783,514 ETH (worth $1.78 billion) on-chain, according to Arkham Intelligence.

In January, BitcoinOG had borrowed $240 million in stablecoins after transferring 148,000 ETH to Aave. The recent repayments indicate a move to reduce exposure rather than responding to liquidation triggers.

This proactive debt reduction came amid rising market volatility and followed Aave’s automated liquidation of $140 million in collateral due to falling asset values across networks.

Trend Research Clears Debt with Focused Strategy

Unlike BitcoinOG, Trend Research directed almost all ETH sale proceeds to repay its Aave loan. The firm’s repayment ratio stood at 98.1%, suggesting a more concentrated approach to deleveraging.

Trend Research still holds 618,045 ETH, valued at $1.4 billion. It had previously borrowed $958 million in stablecoins to fund its ETH purchases, reportedly at an average price of $3,265 per ETH.

Public statements from the firm’s founder, Jack Yi, indicated a bullish stance for early 2026. However, the repayment of debt may point to a shift toward a more cautious strategy in response to current market shifts.

Voluntary Moves Amid Aave Liquidation Activity

The two whales’ activity coincided with Aave’s automated systems processing over $140 million in liquidations on January 31. These liquidations were triggered automatically when collateral fell below required levels, without manual input.

“Aave Protocol liquidated over $140M collateral across multiple networks without any issues, fully automated,” wrote Aave founder Stani Kulechov on X. By contrast, the whale repayments between February 1 and 2 were not forced events. Both entities acted before their loans reached liquidation thresholds, demonstrating risk management during turbulent market conditions.

Aave’s Lending Protocol Remains Stable

Despite ongoing market pressure, Aave continues to lead DeFi in total value locked. ETH deposits on the platform surpassed 3 million ETH in early January and are approaching 4 million ETH, according to Token Terminal.

Aave’s ability to process large-scale liquidations while remaining fully operational and solvent sets it apart among DeFi protocols. The combination of automated liquidations and whale-led debt repayments has tested the system’s capacity and resilience. These recent moves by major holders suggest a broader trend of managing leverage and risk, especially in uncertain market conditions.

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