A cryptocurrency whale has accumulated over 136 million USD in WBTC and ETH through revolving loans on OKX and Bybit over the past 6 days.
This activity was detected by on-chain analyst Yu Jin, showing that the whale uses the strategy of withdrawing WBTC and ETH from exchanges, then depositing into the Aave platform to borrow USDT, and then continues to rotate the assets through exchanges to increase holdings with a total value of up to 136 million USD.
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The whale has accumulated 918.6 WBTC and 6,218 ETH in 6 days.
The average cost per unit is 118,833 USD for WBTC and 4,511 USD for ETH.
The loan on Aave related to this strategy amounts to 29 million USD.
What method has the cryptocurrency whale used to accumulate WBTC and ETH?
This whale has leveraged revolving loans between OKX and Bybit along with the DeFi platform Aave to increase its holdings of WBTC and ETH. The method is to withdraw assets from the exchange, deposit into Aave, and then borrow USDT for investment rotation.
This strategy allows the whale to rotate capital efficiently, utilizing loans to continue buying and holding coins without needing to use significant actual capital in the short term. This is a form of leveraging DeFi to optimize profits in the cryptocurrency market.
This method reflects a deep understanding of borrowing tools in the DeFi market and centralized exchanges, helping the whale execute trades with smart leverage.
What is the volume and accumulated value of this whale?
The whale currently holds 918.6 WBTC at an average cost of about 118,833 USD each, with a total value of about 108 million USD. At the same time, the whale has also accumulated 6,218 ETH at an average price of 4,511 USD, totaling about 28.33 million USD.
This is a very large amount, indicating continuous and detailed planned buying activities to enhance market position. The total value of accumulated assets reaches over 136 million USD, creating a significant influence in the cryptocurrency market.
This figure reflects the whale's substantial scale and financial capability as it simultaneously uses multiple modern financial tools to optimize its investment portfolio.
How does borrowing on Aave support the accumulation strategy?
The whale has borrowed a total of 29 million USD on Aave, a reputable decentralized lending and borrowing platform in the market, to use as collateral and financial leverage.
Borrowing on Aave allows the whale to maintain liquidity, utilizing loans without needing to sell current assets, thereby increasing the ability to rotate capital to buy more WBTC and ETH. This demonstrates a clever combination of DeFi tools and centralized exchanges.
A borrowing and asset rotation strategy like this is very effective in increasing position without directly affecting the investor's cash flow.
Yu Jin – On-chain analyst, August 2024
Frequently asked questions
Who are the whales and why are their activities important?
Whales are investors or organizations that hold large amounts of cryptocurrency, which can significantly impact market prices through their transactions.
Why do whales use borrowing on DeFi platforms like Aave?
Borrowing on Aave helps the whale leverage financial leverage, maintain liquidity, and increase the volume of holdings without selling the original assets.
What impact does accumulating WBTC and ETH at high values have on the market?
When whales buy in large quantities, it can create upward price pressure, but also poses volatility risks when they sell.
How to track the activities of cryptocurrency whales?
On-chain tools and public transaction data analysis can be used to track whale behavior.
Are there risks associated with using revolving loans?
There are risks regarding liquidity and price volatility, which could lead to position liquidation if the market moves unfavorably.
Source: https://tintucbitcoin.com/ca-voi-vay-xoay-vong-wbtc-eth/
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