Two major Ethereum holders sold ETH totaling $371M over 48 hours to repay debts on loans in Aave, the largest decentralized lending protocol.
These transactions coincided with a wave of automatic liquidations in Aave. In a short period, the protocol closed positions worth over $140M across several networks. This shows that caution in the market is increasing even among the largest capital holders.
BitcoinOG Sold $292M in ETH and Repaid $92.5M in Debt
A whale known as BitcoinOG, one of the most closely tracked on-chain addresses, transferred 121,185 ETH worth about $292M to Binance over two days. Part of the proceeds, $92.5M in stablecoins, was withdrawn and used to repay debt in Aave.
Despite the large sale, BitcoinOG remains one of the largest individual crypto holders. According to Arkham Intelligence, as cited by Lookonchain, the wallet still holds 30,661 BTC worth about $2.36B, as well as 783,514 ETH worth about $1.78B.
Notably, only about a third of the ETH sent to Binance was used to repay debt. The remaining approximately $200M may have gone toward other purposes, including portfolio rebalancing, hedging, or forming a cash reserve. However, there is no additional confirmed on-chain data on this yet.
BitcoinOG first drew attention after a successful short on BTC shortly before the market crash in October 2025. At the end of January, the address transferred 148,000 ETH to Aave and borrowed $240M in stablecoins, opening a long position. The current actions look like risk reduction and winding down this position, rather than a forced liquidation.
Trend Research Sold $79M in ETH and Almost Fully Closed Debt
Investment company Trend Research from Hong Kong conducted a similar but more careful operation. In 20 hours, the firm transferred 33,589 ETH worth about $79M to Binance, then withdrew 77.5M USDT and used it to repay debt in Aave. Almost the entire amount from the sale was used specifically to pay off the loan.
At the same time, Trend Research still holds 618,045 ETH, valued at about $1.4B. The company, associated with LD Capital, has been one of the most aggressive buyers of Ethereum in recent months. To finance purchases, it borrowed up to $958M in stablecoins from Aave, building a position with an average entry price of about $3,265 per ETH.
The company's founder, Jack Yi previously stated that Trend Research is betting on a structurally bullish first quarter of 2026. However, the start of debt repayment indicates a more cautious approach, even though the firm still holds a significant position in Ethereum.
Two Whales and Two Different Strategies
Both major players acted according to a similar scheme. They converted ETH into stablecoins via Binance, then used the funds to repay debts in Aave. However, the details of the deals show fundamentally different approaches to risk management.
BitcoinOG sold 121,185 ETH for about $292M, but only $92.5M went to repay debt. That's about 32% of the proceeds. The whale still holds significant assets, including 783,514 ETH and 30,661 BTC. Such a low repayment percentage indicates a broader portfolio rebalancing, not just a simple reduction of the position in Aave.
See Also: Corporate Ethereum Holders Faced Billion-Dollar Losses During the Market Downturn
Trend Research acted much more strictly. The company sold 33,589 ETH for $79M and almost the entire amount, 77.5M USDT, was used to repay debt. In fact, about 98% of the proceeds went specifically to reduce the credit burden. The firm still holds 618,045 ETH worth about $1.4B, which indicates not an exit from the position, but a deliberate reduction of leverage.
Importantly, neither of these sales was forced. These were not liquidations. Both participants acted proactively, reducing risks amid increased volatility. This behavior is more characteristic of experienced portfolio management than of panic selling.
Aave Withstood a $140M Wave of Liquidations
The voluntary actions of large ETH holders occurred amid high turbulence. On January 31, Aave's automatic mechanisms liquidated collateral worth more than $140M across several blockchain networks.
The founder of Aave Stani Kulechov called the event a serious stress test for the on-chain lending market, which exceeds $50B. In his post on X, he noted that the protocol liquidated more than $140M in collateral fully automatically and without failures.
See Also: Why the Growth of USDT Dominance Signals Weakness in Cryptocurrencies
It is important to distinguish between two types of activity. The $140M in liquidations recorded on January 31 were automatic and triggered when borrowers' collateral value fell below acceptable levels. Meanwhile, the $371M in ETH sales by whales on February 1 and 2 were voluntary. These were conscious decisions to sell assets and repay debts before the risk of liquidation arose.
Both events occurred within the same 48-hour window but reflect different mechanics. The automatic liquidations demonstrated the resilience of the Aave protocol under stress. The whales' actions show that large holders are proactively reducing risks, preparing for possible further market pressure.
ETH Deposits in Aave Hit All-Time High
Despite market volatility, Aave's fundamentals remain strong. At the beginning of January, the volume of ETH deposits in the protocol reached a new all-time high. According to Token Terminal, the figure exceeded 3M ETH and approached 4M ETH.
Currently, Aave leads all DeFi protocols in total value locked and took first place in the top 10 protocols according to DeFiLlama at the start of 2026. The protocol's ability to handle large-scale liquidations without insolvency risk and without manual intervention continues to set it apart from competitors.
What This Means
The simultaneous deleveraging by two of the largest on-chain ETH holders sends a clear signal. Even the most bullish whales are starting to reduce risk. Both BitcoinOG and Trend Research retain huge positions. Together, their ETH holdings exceed $3B. However, instead of simply waiting out volatility, they are deliberately reducing their credit burden.
The key question for the market is whether such steps are part of standard risk management or a signal that major DeFi players are starting to act much more cautiously.
