According to @cas_abbe, Aave currently has about $4.7B in looped ETH positions while the stETH market trades only roughly $200–250M per day, signaling a liquidity mismatch if forced unwinds occur, source: @cas_abbe. He warns that large-scale liquidations could overwhelm stETH market depth, triggering a chain reaction across ETH/stETH positions and causing severe slippage, source: @cas_abbe. For trading strategy, this points to elevated liquidation cascade risk on Aave-linked ETH/stETH collateral; traders should track Aave health factors, the stETH-ETH discount, and on-chain liquidity to manage exposure, source: @cas_abbe.

According to @cas_abbe, Aave and other lending protocols assume 1 stETH equals 1 ETH for collateral purposes because users can ultimately redeem stETH for ETH after a waiting period (source: @cas_abbe on X). According to @cas_abbe, stETH often trades at a slight discount to ETH in secondary markets, creating a stETH/ETH basis that diverges from the 1:1 collateral assumption (source: @cas_abbe on X). According to @cas_abbe, this market discount is the second key reason in his analysis and is relevant for traders evaluating borrowing power and potential liquidation dynamics when using stETH as collateral (source: @cas_abbe on X).

According to Cas Abbé, the current activity is driven by a mix of unwinding risky strategies, managing risks around stETH, profit taking after the ETH rally, and preparing for future products like ETH staking ETFs, source: Cas Abbé on X, August 17, 2025.

According to @cas_abbe, a once-popular ETH DeFi looping trade has ended (source: @cas_abbe). The strategy staked ETH on Lido to receive stETH, used stETH as collateral on Aave to borrow ETH, restaked the borrowed ETH, and repeated to amplify yield, functioning as effectively free money while borrowing was cheap (source: @cas_abbe).

According to @cas_abbe, Justin Sun closed an ETH leverage loop of nearly 600M USD on Aave in July, causing ETH borrow rates to spike, the stETH to ETH price to slip by about 0.3 percent, and looping yields to collapse, signaling immediate stress for leverage-driven carry trades. source: @cas_abbe According to @cas_abbe, the move prompted many whales to exit similar positions, highlighting fragile liquidity and tighter borrowing conditions for ETH and stETH on Aave that reduce carry returns for traders. source: @cas_abbe

According to Lookonchain, 893,599 ETH (about $3.96B) is currently queued for unstaking based on ValidatorQueue data, source: Lookonchain; ValidatorQueue. Lookonchain reports that whale address 0x2aC9 swapped 4,242.4 stETH for 4,231 ETH and deposited the 4,231 ETH (about $18.74M) to Kraken to sell, source: Lookonchain; Arkham Intel. Based on those reported amounts, the trade realized an 11.4 ETH loss (about $50.5K), implying roughly a 0.27% stETH to ETH discount at execution, source: Lookonchain. The direct exchange deposit indicates immediate spot sell flow on Kraken as stated by the tracker, source: Lookonchain.

According to @rovercrc, the amount of staked ETH is surging and selling pressure appears low based on his post dated 2025-08-09, suggesting a potential supply-tightening backdrop for ETH. Source: @rovercrc on X, 2025-08-09. For trading impact, a higher staking ratio reduces immediately liquid ETH because validator exits are gated by protocol withdrawal mechanics and queues, which can tighten circulating supply during demand spikes. Source: Ethereum Foundation documentation on Ethereum staking and withdrawals. Traders should verify the claim by checking net validator deposits, active validators, and the exit queue on-chain before positioning. Source: Beaconcha.in validator and deposit contract dashboards. Cross-check ETH exchange reserves and net flows to gauge market float and potential supply squeeze risk during rallies. Source: Glassnode on-chain ETH exchange balance metrics. If on-chain data confirm rising staking and shrinking exchange balances, market regimes have historically skewed toward spot-led upside and higher basis, warranting prudent position sizing and monitoring of perp funding. Source: Glassnode research on ETH exchange balances and Deribit Insights on perpetual funding and basis.

According to @bolsaverse, the tokenomics of this cryptocurrency features a fair launch with no VC allocations or pre-mines, a Bitcoin-like fixed supply of 21 million, and a monthly emission decline of 1.425%. The current total value locked (TVL) stands at $530 million through stETH and DAI, indicating significant market participation and potential for stable growth.

According to @EmberCN, MEXC has transferred 12,652 stETH (valued at $33.75M) from its hot wallet to Bybit's cold wallet in the past hour. Bybit has reportedly received a total of 64,452 ETH ($170.73M) as loan support from Bitget, an institutional withdrawal from Binance, and MEXC. This indicates significant financial backing for Bybit, potentially impacting trading dynamics.

According to The Kobeissi Letter, Bybit's CEO has confirmed that over $1.4 billion in Ethereum and other assets have been hacked from the exchange. The stolen funds are reportedly being transferred to new addresses and sold. Arkham Intelligence has revealed that $200 million worth of stETH has already been sold, suggesting a significant impact on the market.

According to The Kobeissi Letter, Bybit's CEO announced that over $1.4 billion worth of Ethereum and other assets have been 'hacked' from the exchange. The stolen funds have started moving to new addresses, with $200 million stETH already sold, as reported by Arkham Intelligence. This incident may impact Ethereum's market liquidity and could lead to increased volatility in the short term.

According to @zachxbt, Bybit experienced a significant security breach, leading to an outflow of $1.4 billion in ETH, stETH, cmETH, and mETH. The perpetrator is actively converting stETH, cmETH, and mETH into ETH. This activity is crucial for traders as it may impact the liquidity and pricing of these tokens. Monitoring the mentioned blockchain addresses is advised for further movements.

According to @zachxbt, Bybit experienced a security breach resulting in $1.4 billion worth of ETH, stETH, cmETH, and mETH being siphoned from the platform. The hacker is actively converting stETH, cmETH, and mETH into ETH, which could impact market stability and liquidity. The transactions are being tracked to addresses 0x47666fab8bd0ac7003bce3f5c3585383f09486e2 and 0xa4b2fd68593b6f34e51cb9edb66e71c1b4ab449e, as per the information provided by @lookonchain.

According to Crypto Rover, Bybit's CEO has confirmed that the exchange was hacked, resulting in a theft of $1.4 billion in ETH and stETH from their hot wallet. This incident could lead to significant market volatility and impact the trading strategies of those holding or trading these assets. Traders should remain cautious and monitor further updates from Bybit and regulatory authorities.

According to Lookonchain, a smart whale has recently spent 10,090 stETH, equivalent to $27.5 million, to purchase 102,259 AAVE tokens within the last five hours. This strategic acquisition increases the whale's total holding to 230,192 AAVE, valued at $62.15 million. The whale has a history of successful trades, having previously earned $5.94 million betting on Trump's election victory and $8.44 million trading LINK. This transaction indicates a bullish sentiment on AAVE's future performance.

According to Lookonchain, a smart whale has spent 10,090 stETH, equivalent to $27.5 million, to purchase 102,259 AAVE tokens in the past 5 hours, increasing their total holdings to 230,192 AAVE valued at $62.15 million. This strategic investment indicates a significant confidence in AAVE's potential as a trading asset, following the whale's previous success in earning $5.94 million from betting on Trump and $8.44 million from trading LINK.

According to Twitter user @EmberCN, a whale has purchased 102,000 AAVE tokens valued at $27.5 million using 10,090 stETH over the past 4 hours. This acquisition has increased the whale's total AAVE holdings to 230,000 tokens, valued at $61.98 million, with an average cost of $223.4 per token. This wallet is now the second-largest AAVE holder, excluding project teams, protocol contracts, and centralized exchanges.

According to Ai 姨, committed ETH/BTC bull James Fickel has recently swapped 6,500 WETH for 225.6 WBTC, valued at $21.68 million, with an average cost of $95,791.6 per WBTC. He continues to stake 85,038 stETH on Aave, borrowing 227 WBTC, with his total ETH holdings valued at $300 million. The current ETH/BTC exchange rate is 0.03505.

According to Ai 姨, James Fickel, a committed ETH/BTC ratio bull, recently converted 6,500 WETH into 225.6 WBTC, valued at $21.68 million, with each WBTC costing $95,791.6. He continues to stake 85,038 stETH on Aave while borrowing 227 WBTC, with his total ETH holdings valued at $300 million. The current ETH/BTC exchange rate stands at 0.03505.

According to Lookonchain, a significant whale has demonstrated strong bullish sentiment towards the cryptocurrency ONDO by exchanging 4,611 stETH, valued at $17.14 million, for 10.98 million ONDO tokens within the last 12 hours. The average purchase price was approximately $1.56 per ONDO. This large transaction suggests a high level of confidence in ONDO's potential future performance.