How the Ethereum Whale Boosted ETH Holdings via Flash Loans
Recently, a long-dormant Ethereum whale re-emerged, employing an innovative capital strategy to accumulate a large amount of ETH. According to blockchain analytics platforms, on February 2, the whale activated two addresses that had been inactive for five years and deposited a total of 44,490 ETH (approximately $98.3 million) into the Aave protocol.
Using Aave’s decentralized lending functionality, the address borrowed 104 million USDT and used these stablecoins to repurchase Ethereum assets. Transaction data revealed that the average purchase price was around $2,295 per ETH, with a total of 45,319 ETH acquired.
The Appeal and Risks of Flash Loans
This strategy, known as flash loans, allows users to maximize capital efficiency without providing additional collateral. While this method can significantly amplify returns, it also comes with potential liquidation risks.
- Capital efficiency is greatly enhanced
- No additional collateral is required
- Liquidation risks should not be overlooked
Currently, the whale’s ETH holdings have increased dramatically, indicating strong confidence in Ethereum’s future. Analysts suggest this strategy may become increasingly popular among institutional investors and high-net-worth individuals.