Ethereum News Today: DeFi-Powered ETH Accumulation: Whales Bet on 2026 ETF Approval

A major Ethereum (ETH) whale has intensified its accumulation strategy by borrowing an additional $120 million in USDT from Aave, a decentralized lending protocol, and depositing the funds into Binance, signaling further plans to expand its ETH holdings. The whale, already holding 385,718 ETH valued at $1.33 billion, has executed a series of leveraged transactions over the past week, leveraging Aave's stablecoin borrowing capabilities to amplify its buying power, according to a Coinpost report. This move follows a pattern of large-scale on-chain activity by high-net-worth crypto participants, blending decentralized finance (DeFi) and centralized exchange (CEX) strategies to scale positions, as reported by Gate here.

The whale's approach involves collateralizing substantial ETH reserves on Aave to secure stablecoin loans, which are then converted into ETH on CEXs like Binance. For instance, the actor has borrowed $270 million in USDC and USDT to date, using $584 million in wrapped ETH (WETH) as collateral, maintaining a health factor of approximately 2.1—a metric indicating the safety margin before liquidation risk, according to a Cryptonomist analysis. On-chain analysts have dubbed the entity the "66k ETH Borrow Whale," highlighting its aggressive, capital-intensive accumulation tactics, as noted in a Phemex report. Recent transactions include a $30 million USDC loan converted into 12,687 ETH within an hour, underscoring the speed and scale of the strategy, as detailed in a Coinfomania article.

The leveraged buying spree has drawn attention for its potential to influence ETH's price dynamics. Market observers note that such large-scale accumulation, particularly when funded by borrowed assets, can amplify volatility. If ETH prices drop sharply, the whale's position could face liquidation risks, creating downward pressure. Conversely, a sustained rally could see the position's gains magnified, as reported in the Coinfomania article. The whale's actions align with broader speculation about a possible Ethereum ETF approval in early 2026, which has spurred bullish sentiment among institutional and retail investors alike, as noted in the Cryptonomist analysis.

Another whale, identified as address 0x9992, has joined the trend. This entity borrowed $10 million in USDC from Aave to purchase 2,909 ETH, adding to its existing 83,816 ETH holdings (worth $289 million) while carrying $122.89 million in borrowed stablecoins, as reported in the Phemex report. The coordinated moves by multiple whales suggest a strategic effort to capitalize on perceived undervaluation in ETH, leveraging DeFi protocols to execute large, low-cost trades, as detailed in the Coinfomania article.

Aave itself has been at the center of broader industry developments. The protocol recently acquired Stable Finance, a consumer-focused DeFi app, to enhance its mainstream product offerings, as reported in a Coindesk business report. While Aave's native token (AAVE) has faced bearish pressures, with prices hovering near $200, the protocol's TVL remains robust at over $10 billion, reflecting its foundational role in the DeFi ecosystem, as noted in an Coinotag analysis.