A massive $1.7 billion worth of ETH has been pulled from Aave over the past week. Aave community members believe Tron founder Justin Sun withdrew at least $600 million, sparking a cascade of market reactions. The large exit led to a sharp drop in ETH liquidity on Aave. Ethereum Whale Movement Causes Sharp Drop in sETH Continuous whale exit on Aave pushed utilization rates higher, which in turn caused ETH borrowing rates to spike. As borrowingbecameexpensive, DeFi users who relied on leveraged staking strategies began unwinding positions. One of the hardest-hit strategies was the popular stETH/ETH leverage loop. Charts show that sETH price dropped from $2,800 to $2,200 in a straight line on July 14. sETH Price Crash On July 14. Source: CoinGecko Users typically deposit ETH, borrow against it, buy stETH, and repeat the cycle to earn staking yields. However, higher borrow rates and a weakening stETH peg made the strategy unprofitable. As loopers began to exit, many rushed to redeem stETH for ETH. This created c