In a significant move reflecting the volatility of the crypto market, Trend Research has completely sold off its Ethereum position as the firm faced mounting losses amid a recent downturn. On February 8, the investment firm, led by founder Jack Yi, transferred a staggering 651,757 ETH, valued at approximately $1.34 billion, to Binance at an average price of $2,055 per token.
This exit marks a painful conclusion to a leveraged DeFi investment strategy that has backfired as Ethereum’s price fell over 30% in January 2026. Trend Research had initially built its position by utilizing a complex strategy on the Aave protocol, borrowing stablecoins against ETH collateral to continuously increase its exposure. However, as Ethereum’s price plummeted, the risk of forced liquidation grew.
According to on-chain analytics provider Lookonchain, the firm’s liquidation prices were between $1,562 and $1,698, revealing the precarious nature of its leveraged position. Faced with the prospect of automatic collateral sales, Trend Research made the calculated decision to exit voluntarily, concluding that the risks outweighed the potential for recovery.
Despite the massive loss of approximately $747 million, one of the largest losses booked by an institutional investor in recent times, Jack Yi remains optimistic about the future. He acknowledged that his previous predictions about market bottoms were premature but expressed faith in the long-term recovery of Ethereum.
The sell-off allowed Trend Research to left with virtually no Ethereum holdings, with around 0.0344 ETH now recorded in its wallet, alongside approximately $10,000 in USDC and a small assortment of other tokens. This drastic reduction in assets reflects the broader struggles many investors have faced due to volatile market conditions.
The Ethereum market has been volatile lately, with its price recently dipping to $1,748 before a small recovery to around $1,967. This rapid decline has raised concerns about other investors similarly positioned on leveraged bets, while Trend Research’s move has left observers pondering the state of the crypto market and whether it signifies a bottoming out.
Interestingly, while Trend Research was liquidating its position, other firms have chosen a different path. BitMine, for example, has recently acquired $42 million worth of Ethereum, demonstrating a confidence in the potential for recovery even as prices fluctuate. This divergence in strategies underlines the ongoing debates within the crypto community regarding the timing of market entry and exit points.
Trend Research drew attention in October 2025 when it became part of a tumultuous $19 billion liquidation event. Following that incident, the firm aggressively accumulated Ethereum, positioning itself as one of the top ETH holders globally. But its recent liquidation emphasizes the inherent risks involved in leveraging positions in such a volatile market.
As the crypto sector continues to grapple with fluctuations, investor sentiments remain mixed. The contrasting strategies between firms like Trend Research and BitMine highlight the uncertainty that shrouds Ethereum’s price trajectory.
