Despite recent declines in the cryptocurrency market, several whales have made significant bets on the two largest cryptocurrencies by market capitalization.
According to data from blockchain analytics platform Lookonchain, the whales (likely the same individual) have deposited large amounts of ETH and Wrapped Bitcoin (WBTC) into decentralized finance (DeFi) protocols to secure long positions.
Using the DeFi protocols, the investor deposited both ETH and WBTC and borrowed stablecoins in return. The stablecoins were then transferred to popular cryptocurrency exchange Binance, where they were used to purchase more ETH and BTC.
The strategy appears to be a bet on the future appreciation of these cryptocurrencies even as their prices have faced pressure in recent days.
In one specific instance, the individual deposited a total of 10,100 ETH (valued at $18.81 million) into Morpho AAVE, a DeFi protocol, in the past 24 hours.
They subsequently borrowed $11.5 million worth of stablecoins, which were then transferred to Binance. It is unclear how much WBTC was involved in the transactions, but the tweets from Lookonchain suggest a significant amount.
Bitcoin (BTC) and Ethereum (ETH) are down 8.8% and 10.4%, respectively, over the past week.