aave

Two of the largest Ethereum holders on-chain have sold a combined $371 million worth of ETH within 48 hours, using the proceeds primarily to repay outstanding loans on Aave, the largest decentralized lending protocol by total value locked (TVL).
The coordinated deleveraging unfolded as Aave processed more than $140 million in automated liquidations across multiple blockchain networks, highlighting a broader shift toward risk reduction among even the most well-capitalized crypto participants.
BitcoinOG Offloads $292M in ETH, Repays $92.5M in Stablecoin Debt
The first major move came from the whale known as BitcoinOG (wallet: 1011short), one of the most closely monitored entities in on-chain analytics.
According to data compiled by Lookonchain and Arkham Intelligence, BitcoinOG deposited 121,185 ETH, valued at approximately $292 million, into Binance over a two-day period. Shortly after, the wallet withdrew $92.5 million in stablecoins, which were used to partially repay debt on Aave.
Despite the scale of the sale, BitcoinOG remains one of the largest individual holders in the crypto market. The wallet still controls:
30,661 BTC, worth roughly $2.36 billion
783,514 ETH, valued at approximately $1.78 billion
Notably, only about 31.7% of the ETH sale proceeds were directed toward loan repayment. The remaining capital may have been allocated toward portfolio rebalancing, hedging strategies, or liquidity reserves, though no definitive on-chain evidence confirms the exact use.
BitcoinOG gained notoriety after executing a highly profitable Bitcoin short ahead of the October 2025 market crash. In late January, the whale transferred 148,000 ETH to Aave and borrowed $240 million in stablecoins, building a leveraged long position. The recent actions appear to represent a strategic reduction of leverage, rather than a forced liquidation.
Trend Research Sells $79M in ETH, Repays Nearly All Outstanding Debt
A second whale, Hong Kong–based Trend Research, followed with a more direct deleveraging strategy.
Over a 20-hour window, the firm deposited 33,589 ETH, worth around $79 million, into Binance. It then withdrew 77.5 million USDT, using nearly the entire amount to repay its Aave debt.
Trend Research still holds a substantial ETH position:
618,045 ETH, valued at approximately $1.4 billion
The firm, affiliated with LD Capital, had been among the most aggressive ETH accumulators in recent months. On-chain data shows Trend Research borrowed up to $958 million in stablecoins via Aave to acquire ETH at an average entry price near $3,265.
Founder Jack Yi previously stated that the firm was positioning for a structurally bullish Q1 2026. The decision to repay debt suggests a more cautious stance, even as the firm maintains long-term exposure.
Two Whales, Two Deleveraging Strategies
While both entities sold ETH and converted proceeds into stablecoins before repaying Aave loans, their approaches differed significantly:
BitcoinOG repaid only a portion of its debt, indicating broader portfolio restructuring.
Trend Research used nearly all sale proceeds to reduce leverage, signaling a more defensive posture.
Importantly, neither sale appears to have been forced. Both actions were voluntary and proactive, reflecting risk management rather than distress.
Aave Processes $140M in Liquidations Without Disruption
These whale actions coincided with a volatile period for DeFi lending markets. On January 31, Aave’s automated systems liquidated more than $140 million in collateral across multiple networks as asset prices declined.
Aave founder Stani Kulechov described the event as a successful stress test for the protocol’s infrastructure:
“Aave Protocol liquidated over $140M collateral across multiple networks without any issues, fully automated.”
It is important to distinguish between the two events. The liquidations were automated, triggered by collateral thresholds. The whale repayments were voluntary, executed to avoid liquidation risk ahead of potential further downside.
Aave Fundamentals Remain Strong Despite Market Stress
Despite heightened volatility, Aave’s on-chain metrics remain robust. According to Token Terminal, ETH deposits on Aave reached a new all-time high in early January, surpassing 3 million ETH and approaching 4 million ETH.
Aave continues to rank first among DeFi protocols by TVL and leads DeFiLlama’s protocol rankings in early 2026. Its ability to process large-scale liquidations without manual intervention reinforces confidence in its risk framework.
What This Signals for the Market
The coordinated deleveraging by two of the largest ETH holders sends a clear message: even long-term bulls are reducing leverage in an uncertain environment.
While both BitcoinOG and Trend Research retain multi-billion-dollar ETH positions, their actions suggest a preference for capital preservation over aggressive exposure as February 2026 begins.
Whether this represents prudent housekeeping or the early phase of a broader risk-off shift among institutional-scale DeFi participants remains a key question for the market.
Disclaimer: This article is for informational purposes only and reflects personal analysis. It does not constitute investment advice. Readers should conduct their own research and assume full responsibility for any investment decisions.
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