Trend Research Battles Liquidation on Overleveraged ETH Position - Can They Hold the Line?
Another day, another high-stakes gamble on the blockchain. Trend Research is locked in a desperate fight to save a massively overleveraged Ethereum position from being wiped out. The clock is ticking—and the margin calls are getting louder.
The High-Wire Act
Leverage in crypto isn't for the faint of heart. It's the financial equivalent of riding a unicycle on a tightrope during a hurricane. While it can amplify gains on the way up, the descent is often brutal and instantaneous. Trend Research now finds itself performing emergency maneuvers, injecting capital and adjusting parameters in a bid to stave off automatic liquidation. It's a defensive game with zero room for error.
A Systemic Squeak in the DeFi Machine
This isn't just about one firm's risk management—or lack thereof. These situations stress-test the underlying protocols. Liquidations create cascading sell pressure, potentially destabilizing the asset's price for everyone else. It's a reminder that in the 'decentralized' world, one entity's miscalculation can still send ripples across the entire pond. Some call it market mechanics; others call it a design flaw waiting for a volatile moment to expose itself.
Will Trend Research navigate the storm, or become another cautionary tale etched into the blockchain's immutable ledger? The market watches, waits, and—in some corners—quietly calculates the odds. After all, in crypto finance, one firm's crisis is just another trader's potential opportunity. Just don't call it gambling.
Trend Research sends nearly 100,000 ETH to Binance in less than 2 hours
The exchange deposit is part of a series of transactions the entity has conducted recently amid efforts to offload ETH and unwind its overleveraged position in the crypto asset, as the crypto market continues to bleed. The transaction tops up more than 94,000 ETH deposited by Trend on Binance in the last two hours.
According to data from blockchain analytics firm Onchain Lens, Trend has deposited a total of 235,588 ETH, valued at approximately $516.16 million, into Binance to sell and repay a stablecoin debt used to go long ETH.
The entity accumulated a leveraged position on Aave’s lending protocol, borrowing about $958 million in stablecoins at its peak. The recent ETH price decline has prompted the entity to take repeated appropriate defensive measures, including selling its ETH collateral.
Trend began offloading its position on February 4 after selling 33,589 ETH for $79 million and used $77.5 million in Tether’s USDT to service the debt. The transaction pushed the crypto entity’s liquidation threshold from $1,880 to $1,830.
On the same day, Trend deposited 10,000 ETH, worth $21.2 million, into Binance and cashed out to repay the loans. Binance’s deposits are a desperate, controlled retreat aimed at raising its liquidation threshold.
$671M in ETH held by Trend Research at risk of liquidation
Lookonchain reported that Trend Research holds 356,150 ETH valued at $671 million with liquidation prices between $1,562 and $1,698. ethereum is trading at $1,923 at the time of this publication, meaning the liquidation prices are just a stone’s throw away.
Lookonchain added that Joseph Lubin and two unknown whales hold 293,302 ETH valued at $553 million, with liquidation prices between $1,329 and $1,368. The blockchain explorer also noted that 7 Siblings holds 286,733 ETH worth $541 million, with liquidation prices at $1,075 and $1,029.
ETH prices have been tumbling alongside the broader crypto market. According to CoinMarketCap, Ethereum is down 7.25% in the last 24 hours, adding to its seven-day decline of nearly 30%.
The crypto asset is among the worst performers among the top crypto assets by market cap, down nearly 40% YTD. The crypto asset is down by more than 60% from its all-time high of $4,953 recorded back in August 2025.
Bitmine Immersions Technology is also among the companies that have come under intense pressure from the ongoing crypto market sell-off. Cryptopolitan previously reported that the firm holds about 4.28 million ETH with an average purchase price of $4,001 per coin. The holdings now carry an unrealized loss of $7 billion and have fallen by more than 40% from their average purchase price.
The company has continued to invest in ETH despite growing criticism. Thomas Lee, the chairman of BitMine, defended the company, saying it is designed to track the price of ETH, whether it is up or down. He added that crypto is down, and ETH will naturally follow, meaning the company’s holdings will decline in value.
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