Ethereum News Today: Ethereum Whales Use DeFi to Hedge Volatility, Secure Liquidity

Generated by AI AgentCoin World
Friday, Oct 10, 2025 1:08 pm ET1min read
Speaker 1
Speaker 2
AI Podcast:Your News, Now Playing
Aime RobotAime Summary

- Ethereum whales withdrew $28.95M ETH from Binance, borrowed $12M USDT via Aave, and redeposited stablecoins into exchanges to strategically manage liquidity amid price volatility.

- Large-scale CEX-to-DeFi transfers by whales coincide with market corrections, reflecting calculated efforts to preserve ETH value while maintaining trading flexibility.

- Ethereum's 48.67% 24-hour volume surge to $18.86B highlights whale-driven liquidity shifts, with analysts noting reduced exchange supply could amplify price swings during sustained demand.

- Additional whale activity includes $90.6M ETH withdrawals and $208M cross-exchange withdrawals, signaling long-term confidence despite recent 3% price drops and $108M liquidations.

- Deflationary mechanisms (45,000 ETH burned Q2 2025, 1.5M ETH staked) and bullish technical indicators have prompted Standard Chartered to raise Ethereum price targets to $7,500.

Ethereum whale activity has intensified, with a significant withdrawal of 14,217 ETH (valued at approximately $28.95 million) from Binance over nine hours, as the cryptocurrency briefly reclaimed the $2,000 price level. This movement, reported by on-chain analytics firm Spot On Chain, involved three large investors who subsequently used the withdrawn ETH to borrow $12 million in

USDT
via the decentralized finance (DeFi) platform
Aave
. The stablecoins were then redeposited into exchanges Binance and OKX, signaling a strategic approach to liquidity management and market positioning Full Source Title[1].

The withdrawal highlights a broader trend of whales leveraging DeFi protocols to optimize capital while navigating Ethereum's price volatility. Notably, such large-scale transfers from centralized exchanges (CEX) to DeFi often coincide with short-term market corrections or increased volatility, according to AI-based market analysis. The whales' actions suggest a calculated effort to maintain liquidity without fully exposing their ETH holdings to immediate price fluctuations Full Source Title[1].

Ethereum's market dynamics remain influenced by whale behavior, with recent data showing a 48.67% surge in 24-hour trading volume to $18.86 billion. Despite a 1.17% decline in Ethereum's price to $1,984.55, the asset's $239.76 billion market capitalization underscores its role as a bellwether for broader crypto sentiment. Analysts note that reduced exchange supply following large withdrawals can amplify price movements, particularly if demand remains robust Full Source Title[1].

Additional whale activity has been observed across the ecosystem. A separate whale, identified by the wallet 0x1fc, withdrew 2,329 ETH (~$7.6 million) from Binance, holding 7,952 ETH and $34.3 million in USDe stablecoins. This wallet subsequently supplied 5,622 ETH and $27.5 million in liquidity to

Uniswap
V4, reinforcing the trend of capital shifting from CEX to decentralized platforms Full Source Title[2]. Meanwhile, another whale transferred 21,000 ETH (~$90.6 million) from Binance, with the address now holding 86,001 ETH (~$376.8 million) Full Source Title[3].

Market watchers are closely monitoring these movements, as they reflect ongoing shifts in liquidity and investor strategy. Ethereum's price action has been volatile, with a recent 3% drop to $4,513.50 amid $108 million in long-position liquidations. However, whale accumulation-such as a $208 million ETH withdrawal from Kraken, Binance, and FalconX-suggests long-term confidence in the asset's value proposition .

The interplay between whale activity and institutional demand is further amplified by Ethereum's deflationary mechanisms, including staking and transaction fee burns. Over 45,000 ETH has been burned in the second quarter of 2025, while 1.5 million ETH (~$6.6 billion) has been locked in staking contracts, reducing circulating supply and potentially supporting price resilience . Analysts like Standard Chartered have raised Ethereum's price targets to $7,500, citing bullish technical indicators and favorable macroeconomic conditions .