Whale Withdraws $100M from Binance, Executes Leveraged ETH Accumulation via Lido and Aave
An anonymous whale moved 32,000 ETH (≈$100 million) off Binance on March 21, 2025, following an earlier 10,000 ETH (≈$33.7 million) withdrawal seven hours prior — 42,000 ETH (~$133 million) in one day, according to Lookonchain. The entity previously staked 10,000 ETH on Lido to receive stETH, used stETH as collateral on Aave to borrow $45 million USDT, and purchased an additional 13,000 stETH with the borrowed funds before redepositing it into Aave. Analysts view the large exchange outflows and recursive staking/borrowing strategy as a coordinated accumulation: staking yields plus collateralized borrowing to increase ETH exposure without selling. Market implications include reduced immediate sell pressure on exchanges, potential short-term order-book thinning and volatility, and higher DeFi total value locked (TVL). Risks include liquidation risk from leveraged positions if ETH/stETH prices drop. Traders should note this signals bullish conviction from a high-net-worth actor and may influence sentiment-driven flows; however, a single whale cannot sustain a market-wide move without broader participation.
Bullish
Large exchange outflows of ETH, especially when aggregated (42,000 ETH in one day), typically reduce immediate sell-side liquidity and are read as accumulation by long-term or sophisticated investors. The whale’s use of Lido and Aave to stake ETH, borrow USDT, and buy more stETH indicates an intent to maintain and leverage ETH exposure rather than realize profits — a behavior consistent with bullish conviction. Similar patterns of coordinated whale accumulation and staking have preceded upward momentum in past ETH cycles by signaling institutional or high-net-worth confidence. Short-term effects may include thinner order books and higher volatility as liquidity shifts off exchanges; long-term effects include higher TVL and constrained exchange supply, which can support price appreciation if demand remains. Countervailing risks — forced deleveraging or liquidation if ETH falls — cap the bullish impact; market-wide confirmation requires broader buying beyond a single whale. Overall, the net signal to traders is bullish sentiment and potential upward pressure, but with heightened short-term risk from leveraged positions.