Ethereum OGs Deploy $98M Looping Strategy on Aave

Edgen Crypto·Feb 02 2026, 22:47

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Key Takeaways

Two long-dormant Ethereum wallets, identified as "OGs," have initiated a significant $98.3 million investment strategy on the Aave protocol. This move, involving 44,490 ETH, breaks five years of inactivity and signals sophisticated confidence in the Ethereum ecosystem and its leading DeFi applications.

Historic Wallets Reactivate: Two Ethereum wallets, dormant for five years, transferred 44,490 ETH worth $98.3 million to Aave on February 2, 2026.
Looped Borrowing Strategy: The OGs are employing a looped borrowing technique, indicating a bullish outlook on Ethereum's price appreciation and the stability of the Aave protocol.
Market Confidence Signal: This large, coordinated maneuver by experienced holders is viewed as a strong vote of confidence, potentially reducing liquid ETH supply and encouraging similar strategies.

Dormant Wallets Stake $98.3M ETH After 5-Year Hiatus

On February 2, 2026, two historical Ethereum wallets broke a five-year period of inactivity by executing a coordinated, large-scale investment. The entities, known as "OGs" for their long-term presence, transferred a combined 44,490 ETH, valued at $98.3 million, into the Aave decentralized finance protocol. This maneuver represents a significant and calculated return to the market by highly experienced participants.

Looped Borrowing Signals Bullish Conviction

The strategy deployed is a sophisticated form of leveraged investing known as "looped borrowing." By supplying ETH as collateral on Aave, the wallets can then borrow stablecoins, use them to acquire more ETH, and redeposit that new ETH to increase their collateral and borrowing power. This cycle amplifies their exposure to Ethereum's price movements. Such a capital-intensive strategy reveals a strong conviction that ETH's potential price appreciation will significantly outweigh the costs of borrowing on the Aave platform.

Move Could Tighten ETH Supply and Boost Aave TVL

This single, high-profile transaction has the potential to influence market dynamics. Locking up nearly 45,000 ETH reduces the liquid, readily tradable supply of Ethereum on exchanges, which can contribute to upward price pressure if demand remains constant. The public nature of this sophisticated strategy may also serve as a vote of confidence in Aave's security and utility, potentially attracting more capital to the protocol and increasing its Total Value Locked (TVL). The move could inspire other large holders to explore similar leveraged positions, further entrenching the bullish sentiment around Ethereum.