Whale Returns: $70M USDC Reclaimed After ETH Deposit to Aave Sparks Market Speculation
A major player just executed a textbook DeFi maneuver—depositing a massive ETH position into Aave and walking away with $70 million in USDC. This isn't a rookie move; it's a calculated repositioning that has the market buzzing.
The Mechanics of the Move
The strategy is pure leverage 101. By locking up Ethereum as collateral, the whale accessed deep liquidity without selling a single token. That $70 million USDC withdrawal represents fresh capital, ready to deploy elsewhere—whether for yield farming, covering other positions, or simply waiting on the sidelines for the next opportunity.
Reading the Ripples
Transactions of this size are never silent. They send shockwaves through lending pools and can shift borrowing rates. For other traders, it's a signal to watch: Is this a precursor to a larger market play, or just sophisticated portfolio management? In crypto, a nine-figure move is rarely just housekeeping.
The move highlights the dual nature of DeFi—it's a playground for financial innovation and, occasionally, a stage for high-stakes performance art funded by other people's future regrets. One thing's clear: when whales move, the whole ocean feels it.
Two wallets identified to belong to the 1011 whale, known for shorting the market during the October downturn, borrowed USDT from Aave and deposited the stablecoins on Binance. | Source: Arkham Intelligence
The whale used two known wallets, with one address unstaking and providing 20M USDT. On another address, the whale holds over 70K wrapped ETH on Aave. The whale has significant exposure to ETH, despite previous episodes of shorting the token.
The stablecoins were then sent to Binance in two transactions. For the OG whale, this ETH transfer is the first wallet activity in three months. In the meantime, the whale mostly held BTC positions, switching to long bets on Hyperliquid in the short term.
Just after the activities of the 1011 whale, a new wallet was created, withdrawing 42K ETH from Binance. At this point, it remains uncertain if the wallets are in any way connected.
October 11 whale may be preparing to buy ETH at a lower price
The recent activity on ethereum has raised speculations that the whale, identified as Garrett Jin, will use the borrowed funds to accumulate more ETH or other assets. The whale is known as a market indicator for a potential shift in sentiment, and has so far moved in at pivotal moments.
As of December 1, the whale did not hold any positions on Hyperliquid. The whale is currently holding $176M in assets, mostly in USDT and wrapped ETH on Aave.
The 1011 whale was also active earlier in November. However, as of November 12, the whale closed all ETH long positions, achieving $2.85M in profit.
The whale has not shown long-term conviction on ETH, but has exploited market recoveries. The current borrowing means the whale may be prepared to buy any local lows, or a market bottom in the NEAR term.
The whale has also posted ETH for staking, showing at least a partial allocation to long-term bullish expectations from Ethereum. The 1011 whale deposited ETH along with several other wallets, all choosing the same staking smart contract from their selected staking pool.
During the latest market downturn, Aave decreased its TVL to $31B, due to the lower price of ETH. Just as the high-profile whale moved in, ETH was back in the $2,800 range, following a recent downturn.
Can ETH recover to a higher range?
ETH showed some signs of reversal in the past days, including renewed buying from whales. However, the token once again fell after a series of long liquidations.
ETH open interest continued to slide to 31 points, indicating deepening fear. During low sentiment positions, ETH may see renewed buying interest, as whales rotate their positions for a lower average price.
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