Ethereum Whales Divided as $52B DeFi TVL Signals Growth

Key Points

• Some whales accumulate millions in ETH despite price dip
• Others sell or short, signaling near-term volatility
• ETH price down 5% in early May but institutional inflows rise
•  Ethereum 2.0 and Layer 2 growth sustain long-term optimism

Ethereum (ETH) investors are facing a critical moment in May 2025. Large investors—commonly known as Ethereum whales—are showing sharply divided strategies. Some are doubling down on ETH, while others are offloading large amounts or taking massive short positions.

This split behavior is keeping ETH’s price under pressure but also suggests potential growth opportunities for those watching closely.

Whales have been buying $ETH in the past 2 hours!

0xDdb4 borrowed 3.44M $USDC from Aave, then spent 3.44M $USDC to buy 1,856 $ETH.

0xf84d borrowed 1.64M $USDC from Aave, then spent 2.34M $USDC to buy 1,259 $ETH.

A newly created wallet(0x69D0) withdrew 2,250 $ETH($4.12M) from… pic.twitter.com/r3kvW8N32i

— Lookonchain (@lookonchain) May 1, 2025

According to blockchain data, a major whale recently bought 3,029.6 ETH worth $5.74 million. Despite facing a temporary loss of $142,000 due to ETH’s dip to $1,842, this whale’s move reflects confidence in Ethereum’s long-term value.

On May 1, Lookonchain reported several whale wallets scooping up thousands of ETH within hours. Clearly, some major players believe the future is still bright for Ethereum.

But the other side of the story paints a different picture. The same week, a whale deposited 2,680 ETH into Kraken, realizing a loss of about $255,000. Another major wallet shifted 3,000 ETH to the same exchange within 10 minutes, a clear signal to sell.

10 minutes ago, a whale 0xaDd deposited 3k $ETH (~$5.53M) into #Kraken.

Those $ETH were bought since ICO and have been dormant in 3 years before depositing.

Just now, he still has 2k $ETH (~$3.69M) in his wallet.

Address:https://t.co/sEQRwaM32n pic.twitter.com/vuLzE65V2r

— The Data Nerd (@OnchainDataNerd) May 2, 2025

One of the most striking moves came from a whale who originally received 76,000 ETH during Ethereum’s 2015 ICO. This whale sold 6,000 ETH, securing nearly $10.92 million in profits.

To add more pressure, an influential whale increased their short position by borrowing 4,000 more ETH, bringing their total short to 10,000 ETH—about $18.4 million. This aggressive shorting strategy signals expectations of further price drops.

If you’re following similar crypto market shifts, you might also want to check out the Bitcoin and Ethereum options expiry analysis for more clues on price movements.

Ethereum Price Chart in the Past Month. Source: TradingView – Techtoken

Institutional flows and DeFi growth offer hope

While Ethereum whale behavior seems chaotic, broader market data offers reasons for cautious optimism.

ETH’s price recently slid 5%, settling around $1,842, down from its March peak of $2,500. Yet, last week alone, Ethereum investment products attracted $183 million in inflows, ending an eight-week streak of outflows.

[近期多次在 $1,800 摸顶空 $ETH 的鲸鱼] 目前已卖空了 10,000 枚 ETH ($17.9M)，均价 $1,791，浮亏 $51 万。

他在过去 1 小时里继续借币卖空了 4,000 枚 ETH，使得他的卖空仓位已经来到了 1 万枚 ETH。卖空均价在 $1,791，目前浮亏 $51 万。

地址链接🔗👉：https://t.co/xTFSo7wUr0

本文由… https://t.co/u7VWOIWMaA pic.twitter.com/JcaPtGtlQX

— 余烬 (@EmberCN) May 1, 2025

The Ethereum spot ETF also reported a $6.49 million net inflow yesterday, signaling that institutions are still betting on Ethereum’s long-term success.

Another positive sign: the total value locked (TVL) in Ethereum’s DeFi ecosystem stands at a robust $52 billion, according to DefiLlama. This shows that despite price volatility, Ethereum remains the leading platform for decentralized finance.

Some analysts see parallels between Ethereum today and Bitcoin in 2020. Analyst Merlijn pointed out that ETH’s price structure now mirrors BTC’s pre-bull run pattern. If history repeats, Ethereum could be poised for a strong upward move.

Ethereum TVL. Source: DefilLama – Techtoken

At the same time, Ethereum’s ecosystem continues to evolve. Upgrades like Ethereum 2.0 and the rise of Layer 2 solutions such as Arbitrum and Optimism are reducing costs and boosting scalability. This positions Ethereum well for future growth.

However, challenges remain. Competitor Solana is gaining developer traction, thanks to easier startup support and a smoother user experience. This dynamic is part of the broader Ethereum narrative crisis that investors are closely watching.

Ethereum is showing the same structure. Source: Merlijn – Techtoken

Whale activity adds to ETH price volatility

The aggressive shorting by whales reflects bearish short-term sentiment. Retail investors seem to agree, with Ethereum trading volume down 10% in the past 24 hours.

Adding to the tension, some whales are moving ETH to centralized exchanges like Kraken, usually a precursor to selling. This has created short-term price pressure even though institutional flows and DeFi TVL suggest long-term confidence.

Such mixed signals also mirror market concerns like the Ripple and Circle buyout rumor and security alerts, such as the ZachXBT Bitcoin theft revelation. All these factors contribute to the broader uncertainty investors face across the crypto space.

Interestingly, while whales and institutions play their strategies, the retail market has also been active in speculative areas. Firms involved in Ether memecoin trading are seeing increased volumes, as highlighted in recent coverage of a memecoin trading firm surge. This retail enthusiasm often correlates with periods of high market volatility.

For Ethereum holders and new investors alike, keeping an eye on whale activity, Layer 2 developments, and institutional movements remains essential in navigating the current landscape.