Leveraged Move Sparks Market Attention
According to recent blockchain monitoring, an entity known as "7 Siblings" has executed a major leveraged play on the DeFi platform Spark. Through eight distinct addresses, they deposited a total of 596,800 ETH (worth around $1.765B) into the protocol, making them one of the largest depositors.
Following this, they borrowed $193M in stablecoins including DAI, USDT, and USDS. These funds were reportedly deployed into ETH purchases during the market dip last October and November.
Market Timing Proves Challenging
Analysis suggests the average purchase price for their ETH acquisition was around $3,531 per ETH, totaling 49,287 ETH. Unfortunately, due to market fluctuations, this position has now generated an unrealized loss of $27.7M.
While their aggressive strategy drew significant market attention, the current loss highlights the risks associated with timing the market, even at apparent dips.
Significant On-chain Footprint
Notably, addresses ranked #2 through #7, plus #10 and #11 on Spark's leaderboard, are all linked to this same entity. This concentrated on-chain behavior pattern reveals a coordinated leveraged strategy across multiple positions.
- Deposited 596,800 ETH (worth $1.765B)
- Borrowed $193M in stablecoins
- Purchased 49,287 ETH at $3,531 average price
- $27.7M unrealized loss on current holdings