Bitcoin OG Uses Aave to Leverage $157M ETH Strategy

Source: Coinomedia Original Title: Bitcoin OG Uses Aave to Leverage $157M ETH Strategy Original Link: A well-known Bitcoin OG just executed a massive on-chain transaction that’s raising eyebrows in the crypto community. He deposited 55,340 ETH (worth around $157.2 million) into the Aave protocol—a leading decentralized lending platform. Shortly after, he borrowed $50 million USDT against that ETH and moved the funds to a major centralized exchange, possibly to buy more ETH.

This sequence has many speculating: is this OG setting up a looping strategy to accumulate even more ETH using Aave?

How Looping Works with ETH on Aave

Looping is a common DeFi strategy that involves using an asset—like ETH—as collateral to borrow a stablecoin, such as USDT. The borrowed funds are then used to purchase more ETH, which is re-deposited to borrow again, creating a loop. This allows the user to increase their ETH exposure without adding new capital, but it also amplifies liquidation risk if ETH’s price falls.

The movement of $50M USDT to a major centralized exchange hints that the OG could be planning to buy back ETH, potentially restarting the loop. Given the size and timing, it’s likely a deliberate, high-conviction play.

What This Means for Ethereum and Aave

Moves like this by high-net-worth crypto veterans often indicate growing confidence in ETH’s future price action. Additionally, using Aave to orchestrate this leverage play shows continued trust in DeFi platforms for large-scale operations.

It also reflects the synergy between DeFi protocols like Aave and centralized exchanges—where the DeFi leg enables borrowing, and the CEX facilitates quick asset purchases.

Whether it’s a sign of an upcoming ETH rally or just a strategic rebalance, one thing is clear: big players are making big moves on ETH, and they’re using Aave to do it.