Two major Ethereum whales offloaded a combined $371 million in ETH over the span of 48 hours to repay outstanding loans on Aave, the largest decentralized lending protocol.
The moves came as Aave processed over $140 million in automated liquidations across multiple networks, underscoring growing caution among even the most well-capitalized market participants.
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BitcoinOG Sells $292M in ETH, Repays $92.5M
The whale known as BitcoinOG (1011short), one of the most closely watched on-chain entities, deposited 121,185 ETH worth $292 million into Binance over two days. From those proceeds, the entity withdrew $92.5 million in stablecoins and used them to pay down debt on Aave.
Despite the large sale, BitcoinOG remains one of the biggest individual holders in crypto. The wallet still holds 30,661 BTC, valued at roughly $2.36 billion, and 783,514 ETH, worth approximately $1.78 billion, on-chain, according to Arkham Intelligence data cited by Lookonchain.
Notably, only about a third of the ETH deposited into Binance went toward loan repayment. The remaining $200 million may have been used for other purposes, such as repositioning, hedging, or building cash reserves — though no further on-chain details have been confirmed.
BitcoinOG first gained prominence after profiting from a well-timed BTC short ahead of the October 2025 crash. In late January, the entity transferred 148,000 ETH to Aave and borrowed $240 million in stablecoins, establishing a leveraged long position. The current deleveraging appears to be a strategic unwinding of that exposure rather than a forced liquidation.
Trend Research Unloads $79M in ETH, Repays Nearly All
Hong Kong-based investment firm Trend Research executed a similar but tighter operation. Over a 20-hour period, the firm deposited 33,589 ETH, worth $79 million, into Binance, then withdrew 77.5 million USDT to settle a debt on Aave. Nearly the entire amount sold went directly to loan repayment.
Trend Research still holds 618,045 ETH valued at approximately $1.4 billion. The firm, an affiliate of LD Capital, had been one of the most aggressive ETH accumulators in recent months, borrowing up to $958 million in stablecoins from Aave to fund purchases at an average entry price of roughly $3,265 per ETH.
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Founder Jack Yi had publicly stated that the firm was positioning for a structurally bullish first quarter of 2026. The decision to begin repaying debt signals a more cautious stance, even if the firm retains a massive ETH position.
Two Whales, Two Approaches
Both whales converted ETH to stablecoins via Binance before repaying Aave loans, but the details reveal different strategies.
| BitcoinOG (1011short) | Trend Research | |
|---|---|---|
| ETH Sold | 121,185 ETH ($292M) | 33,589 ETH ($79M) |
| Debt Repaid | $92.5M stablecoins | 77.5M USDT |
| Repayment Ratio | ~31.7% of sale proceeds | ~98.1% of sale proceeds |
| Timeframe | 2 days | 20 hours |
| Remaining ETH | 783,514 ETH ($1.78B) | 618,045 ETH ($1.4B) |
| Other Holdings | 30,661 BTC ($2.36B) | — |
BitcoinOG’s lower repayment ratio suggests the entity is rebalancing across multiple fronts, not just reducing Aave exposure. Trend Research, by contrast, directed nearly every dollar from its sale toward clearing debt — a more focused deleveraging play.
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Neither entity was forced into these sales. Both acted preemptively to reduce risk, a pattern consistent with sophisticated portfolio management during volatile conditions.
Aave Weathers $140M Liquidation Storm
These voluntary moves took place against a turbulent backdrop. On Jan. 31, Aave’s automated systems liquidated over $140 million in collateral across multiple blockchain networks.
Aave founder Stani Kulechov described the event as a significant stress test for the protocol’s $50 billion-plus on-chain lending markets. “Aave Protocol liquidated over $140M collateral across multiple networks without any issues, fully automated,” Kulechov wrote on X.
It is important to distinguish between the two types of activity. The $140 million in liquidations on Jan. 31 was automated — triggered when borrowers’ collateral values fell below required thresholds. The $371 million whale deleveraging on Feb. 1–2 was voluntary — proactive decisions to sell assets and repay loans before reaching liquidation risk.
Both events occurred within the same 48-hour window but reflect different mechanisms. The automated liquidations demonstrate Aave’s protocol resilience. The whale repayments reveal how large holders are actively managing risk ahead of potential further downside.
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Aave’s ETH Deposits Hit Record High
Despite the market turbulence, Aave’s fundamentals remain strong. ETH deposits on the protocol reached a new all-time high in early January, surpassing 3 million ETH and approaching 4 million ETH, according to Token Terminal data.
Aave currently leads all DeFi protocols in total value locked and was ranked first in DeFiLlama’s top 10 protocol list at the start of 2026. The protocol’s ability to process large-scale liquidations without insolvency risk or manual intervention continues to set it apart from competitors.
What It Means
The simultaneous deleveraging by two of the largest ETH holders on-chain sends a clear signal: even the most bullish whales are trimming risk exposure as February 2026 unfolds. Both BitcoinOG and Trend Research retain enormous positions — over $3 billion in combined ETH holdings — but are choosing to reduce leverage rather than ride out volatility.
For the broader market, the key question is whether this represents prudent housekeeping or the early stages of a broader risk-off shift among institutional-scale DeFi participants.
Source: https://beincrypto.com/ethereum-whales-dump-to-repay-aave-debt/
