Whale Dumps 41,800 ETH to Avoid Liquidation, Sparks Interest in Aave Lending Activity

Whale Sells 41,800 ETH to Dodge Liquidation

Recent on-chain activity reveals a major wallet rapidly adjusting its position amid heightened market volatility. Facing potential collateral shortfall, the entity sold 41,800 ETH—worth around $94.14 million—across 10 linked addresses within just eight hours. The move appears aimed at avoiding full liquidation on decentralized lending platforms.

Funds Redirected to Repay Aave Loans

Shortly after the ETH sales, the wallet transferred proceeds to Aave to settle outstanding borrowings. This strategic shift highlights deteriorating health in its loan position, forcing urgent deleveraging. Since the broader market pullback on January 31, the address has offloaded a total of 58,117 ETH, valued at roughly $131 million.

• Latest dump: 41,800 ETH (~$94.14M)
• Total sold since Jan 31: 58,117 ETH (~$131M)
• ETH still staked: 38,465.3
• USDC currently borrowed: 40.06M

Despite significant risk reduction, the wallet continues to hold a large leveraged position. Analysts warn this could signal broader pressure across over-leveraged accounts as crypto markets remain fragile.