Ethereum OGs Make $98M Move Using Looped Borrowing on Aave

Ethereum OG wallets deployed $98.3M on Aave using looped borrowing, adding 45,319 ETH after five years of inactivity.

Two long-dormant Ethereum wallets became active on February 2, 2026, and executed a large leveraged position using Aave.

The move involved nearly $100 million in Ether and renewed attention on looped borrowing strategies during a volatile market phase.

Dormant Ethereum Wallets Reactivate After Five Years

Blockchain data shows that two early Ethereum wallets resumed activity after five years of inactivity.

On February 2, the wallets transferred a combined 44,490 ETH into the Aave lending protocol. At the time of deposit, the Ether was valued at about $98.3 million.

The wallets are considered “OG” addresses due to their long holding period and early activity history.

Their sudden return drew attention because of the size and structure of the transaction. No prior transfers had been recorded from these addresses since 2021.

The ETH deposit was not held passively on Aave. Instead, it became the base for a leveraged strategy that increased overall exposure to Ether.

This approach relied on borrowing stablecoins against deposited collateral.

Looped Borrowing Used to Increase ETH Exposure

After depositing ETH, the wallets borrowed about $104 million in USDT from Aave. The borrowed funds were then used to purchase an additional 45,319 ETH.

The average acquisition price was about $2,295 per Ether.

This method is commonly described as looped borrowing. It involves depositing collateral, borrowing against it, and buying more of the same asset.

The new assets can then be redeposited to repeat the cycle.

Such strategies can amplify gains and losses. The wallets now control a much larger ETH position than before the transaction.

The structure also increases sensitivity to price changes and protocol conditions.

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Market Conditions and Risk Factors Around the Trade

As of February 2, 2026, Ether was trading near $2,209.13. This placed the leveraged position close to its average entry price.

Any sharp price move could affect collateral ratios on Aave.

Looped borrowing carries liquidation risk if ETH prices fall and loan thresholds are breached. It also faces interest rate risk if borrowing costs rise.

Large liquidity withdrawals by other users can push rates higher within hours.

Aave’s total value locked reached about $35 billion in 2026, reflecting strong protocol usage.

Activity from large borrowers contributes to protocol revenue through interest payments. Aave recorded record monthly revenue during 2025.

The protocol recently supported a token buyback program tied to revenue growth. Large leveraged positions increase borrowing demand and fee generation.

However, they also raise exposure to sudden market stress during sharp downturns.

The reactivation of these wallets shows continued use of DeFi leverage by long-term holders.

Market participants continue to monitor on-chain data for further movements linked to these addresses.

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