Aave Whale Pledges $390M USDC to Borrow 42K ETH to Binance
On October 20, a whale address on Aave deposited 200 million USDC as collateral and borrowed 22,000 ETH (approximately $89 million), which it then transferred to Binance. This address appears to match one that withdrew 190 million USDC from Binance last week. Combined, it has now collateralized 390 million USDC to borrow a total of 42,000 ETH (around $169 million), all sent to the exchange. Analysts warn this influx could trigger ETH sell pressure and boost market leverage. Traders should watch Aave lending rates, ETH inflows to exchanges, and whale activity for signs of heightened volatility.
Bearish
The whale’s large-scale borrow-and-transfer on Aave increases ETH supply on exchanges, raising the risk of sell-offs and near-term downward pressure. The combined 42,000 ETH inflow underscores growing DeFi leverage, which can magnify market volatility. If leveraged positions unwind during downturns, this could sustain bearish momentum for ETH.