On January 25, monitoring data showed that a major investor took action on the decentralized lending platform Spark to secure their position amid falling Ethereum (ETH) prices.
In response to market volatility, the investor sold 11,190 ETH via the OKX exchange, worth approximately $32.83 million. They then withdrew $26.55 million in USDT from the exchange to repay loans previously borrowed on Spark by collateralizing ETH.
Following the transaction, the liquidation price of ETH in the loan position dropped significantly and is now at $2,268, offering a $667 buffer from the current market price. The investor still has approximately 37,400 ETH, valued at around $110 million, locked as collateral on Spark, which has generated $62.57 million in loans.
Industry analysts noted that such moves reflect how large holders are proactively managing risks to protect against potential liquidation pressure during heightened market uncertainty.